FERC okays outside investors in two NextEra wind projects

The Federal Energy Regulatory Commission on Dec. 8 approved an Oct. 12 application from Osborn Wind Energy LLC and Oliver Wind III LLC for approval for JPM Capital Corp. and Wells Fargo Wind Holdings LLC to acquire 100% of the passive Class B membership interests in the applicants’ direct parent, Dogwood Wind LLC.

FERC noted: “Applicants state that the Proposed Transaction may not require authorization under section 203(a)(1); however, out of an abundance of caution, they nevertheless ask the Commission to authorize the Proposed Transaction. This order authorizes the Proposed Transaction without making any determination of jurisdiction.”

These project companies are exempt wholesale generators with market-based rate authority. Both projects are due for initial operations around now.

  • Osborn will own and operate an approximately 200.9-MW wind facility located in DeKalb County, Missouri.
  • Oliver III will own and operate an approximately 99.3-MW wind facility located in Oliver County, North Dakota.

The Osborn Facility is situated within the Southwest Power Pool (SPP) market, and the Oliver III Facility is situated within the Midcontinent Independent System Operator (MISO) market. Output from each of the Osborn and Oliver III Facilities is sold to unaffiliated entities under long-term agreements.

The applicants are direct subsidiaries of Dogwood, whose corporate parent is NextEra Energy (NYSE: NEE). Within the SPP market, affiliates of applicants own approximately 3,644 MW of generation capacity. Within the MISO market, affiliates of the applicants own approximately 2,475 MW of generation capacity.

JPM Capital is an indirect subsidiary of financial service company JPMorgan Chase & Co. Wells Fargo is an indirect, wholly owned subsidiary of Wells Fargo & Co., a publicly-traded financial holding company regulated the Federal Reserve under the Bank Holding Company Act of 1956.

The passive Class B interests will not allow these outside investors to have a vote with respect to the day-to-day operation of the Osborn and Oliver III facilities, except for veto and consent rights necessary to protect their investments. NextEra Energy Resources LLC, an indirect subsidiary of NextEra, will indirectly hold 100% of the Class A membership interests in Dogwood.

About Barry Cassell 20414 Articles
Barry Cassell is Chief Analyst for GenerationHub covering coal and emission controls issues, projects and policy. He has covered the coal and power generation industry for more than 24 years, beginning in November 2011 at GenerationHub and prior to that as editor of SNL Energy’s Coal Report. He was formerly with Coal Outlook for 15 years as the publication’s editor and contributing writer, and prior to that he was editor of Coal & Synfuels Technology and associate editor of The Energy Report. He has a bachelor’s degree from Central Michigan University.