FERC okays ownership changes for wind farms in California, Illinois

The Federal Energy Regulatory Commission on Dec. 9 approved a Nov. 4 application from Kumeyaay Wind LLC and Mendota Hills LLC requesting authorization for certain ownership transactions.

With these now-approved transactions: Kumeyaay Wind Member LLC will acquire 100% of the Class A non-managing membership interests in Kumeyaay from TIFD VIII-W LLC (TIFD VIII-W): and Leeward Future Holdings LLC will acquire 100% of the membership interests in Mendota Hills from Wind Portfolio Holdings 1 LLC (WPH 1).

FERC said in the Dec. 9 approval: “Although Applicants state that the Proposed Transactions may not require authorization under FPA section 203 (a)(1), Applicants nevertheless seek prior authorization. This order authorizes the Proposed Transactions without making any determination of jurisdiction.”

Kumeyaay owns an approximately 50-MW wind facility located in San Diego County, California, within the California Independent System Operator (CAISO) market. Kumeyaay is an exempt wholesale generator (EWG) with market-based rate authority. The output of the Kumeyaay facility is sold to San Diego Gas & Electric pursuant to a long-term power purchase agreement in effect through Dec. 24, 2025.

Kumeyaay is a direct, wholly owned subsidiary of Kumeyaay Holdings LLC (Kumeyaay Holdings). All of the Class B managing membership interests in Kumeyaay Holdings are directly owned by Kumeyaay Wind Member, which is an indirect, wholly owned subsidiary of Leeward Renewable Energy LLC (LRE). All of the Class A non-managing membership interests in Kumeyaay Holdings are currently owned by TIFD VIII-W, an indirect, wholly owned subsidiary of General Electric (NYSE: GE).

Mendota Hills owns an approximately 50-MW wind facility located in Compton and Lee counties, Illinois, within the PJM Interconnection footprint. Mendota Hills is an EWG with market-based rate authority. The output of the Mendota Hills facility is sold into the PJM market.

Mendota Hills is a direct, wholly owned subsidiary of WPH 1. All of the Class B managing membership interests in WPH 1 are owned by Wind Portfolio 1 Member LLC, which is an indirect, wholly owned subsidiary LRE. The Class A non-managing membership interests in WPH 1 are owned EFS Wind Holdings I LLC (EFS Wind I) and LWF Portfolio I LLC (LWF Portfolio).  EFS Wind I is an indirect, wholly owned subsidiary of GE.

LRE is a direct, wholly owned subsidiary of Leeward Renewable Energy Holdings LLC, which is a direct, wholly owned subsidiary of ArcLight Energy Partners Fund VI LP (ArcLight Fund VI). ArcLight Fund VI is a private equity fund ultimately managed by ArcLight Capital Partners LLC. ArcLight Capital manages and controls a number of private investment funds.

Within the CAISO geographic market, the ArcLight funds are affiliated with Buena Vista Energy LLC, which owns an approximately 38-MW wind generation facility. Within PJM, the ArcLight funds are affiliated with entities that own or control approximately 4,810 MW of generating capacity.

Under the Kumeyaay Transaction, Kumeyaay Member will acquire 100% of the Class A non-managing membership interests in Kumeyaay Holdings from TIFD VIII-W. As a result, Kumeyaay Member will hold 100% of both the Class B managing membership interests and the Class A non-managing membership interests in Kumeyaay Holdings, which in turn, owns 100% of the membership interests in Kumeyaay.

Under the Mendota Hills Transaction, Leeward Future will acquire 100% of the membership interests in Mendota Hills from WPH 1. As a result, Mendota Hills will be a direct, wholly owned subsidiary of Leeward Future. EFS Wind I and LWF Portfolio will no longer hold any ownership interests in Mendota Hills following the Mendota Hills Transaction.

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.