Wind Owner Seeks PUCT Order That Approval Not Needed For Passive, Noncontrolling Equity Transfers
August 17,2018
Kinderwood Wind, LLC petitioned the Texas PUC for a declaratory order interpreting PURA § 39.158 and a finding that an application under § 39.158 of the Public Utility Regulatory Act (PURA) is not required for the transfer of passive, noncontrolling equity interests in a portfolio of existing wind generation facilities in the Electric Reliability Council of Texas
"Kinderwood seeks this declaration in order to obtain regulatory clarity regarding the need to obtain Commission approval for transactions involving the transfer of passive, non-controlling equity interests in electric generation facilities to third parties, commonly referred to as 'tax equity investments.' As a general matter, transactions involving tax equity investments do not result in either the transfer of ownership or control of the wind generation facilities or the merger or consolidation of the contracting parties. Prior applicants have repeatedly questioned whether approval under PURA § 39.158 is required for these types of transactions," Kinderwood said in the filing
"This Commission [the Texas PUC], however, has not directly addressed the passive nature of tax equity interests and whether the transfer of these interests requires advance authorization from the Commission under PURA § 39.158. To obtain clarity on this issue, Kinderwood respectfully requests the issuance of a declaratory order holding that approval under PURA § 39.158 is not required for the transfer of passive, non-controlling equity interests in existing wind generation facilities in ERCOT," Kinderwood said in the filing