The Federal Energy Regulatory Commission on Dec. 21 approved a Nov. 14 application from Deerfield Wind Energy LLC, Deerfield HoldCo LLC, Deerfield Wind SponsorCo LLC, Algonquin Power (Deerfield Holdings) Inc. (APDH) and Deerfield Holdings 1 LLC (DHI) for the sale of interests related to Deerfield Wind’s project in Michigan.
APDH will acquire the remaining 50% of the membership interests in SponsorCo currently owned by DHI, and then BAL Investment & Advisory Inc. (BALIA) and Citizens Asset Finance Inc. (Citizens) (collectively called the “Passive Investors”) will acquire 100% of the passive Class A tax equity interests in HoldCo.
FERC noted in the Dec. 21 order: “Although Applicants state that the Proposed Transaction may not require authorization under FPA section 203 (a)(1), Applicants nevertheless seek prior authorization. This order authorizes the Proposed Transaction without making any determination of jurisdiction.”
Deerfield Wind is an exempt wholesale generator with market-based rate authority. Deerfield will construct, own, and operate a 149-MW wind facility located in Huron County, Michigan. The facility is situated within the Midcontinental Independent System Operator (MISO) market. Output will be sold under a long-term power purchase agreement to an unaffiliated purchaser.
Deerfield Wind, the project company, is directly wholly owned by HoldCo, which, in turn, is directly wholly owned by SponsorCo. SponsorCo is owned 50% by DHI and 50% by APDH.
DHI is indirectly wholly owned by Renewable Energy Systems Holdings Ltd., a corporation formed under the laws of England and Wales. APDH is indirectly owned by Algonquin Power & Utilities Corp., an energy company that, through its subsidiaries, owns and operates renewable electric generation, electric transmission, and utility businesses throughout North America.
BALIA is an indirect, wholly owned subsidiary of Bank of America Corp., a financial holding company.
Citizens is an indirect, wholly owned subsidiary of Citizens Financial Group Inc., a publicly traded entity that offers retail and commercial banking products and services to individuals, small businesses, middle-market companies, large corporations and institutions.
Incidentally, Deerfield Wind on Sept. 26 requested FERC approval for market-based rate authority, and in that filing said the project was expected to begin generating test power as early as mid-October 2016. FERC, incidentally, on Dec. 21 accepted that market-based rate authority in a separate order.