August 20, 2001 — In a recent transaction, Madera Power, llc, a California limited liability company, purchased the Madera Power Plant, a 28.5 MW biomass power plant in Madera County, Calif., from San Joaquin Valley Energy Partners I, L.P., a California limited partnership.
The plant, which had not been in operation since 1995, required a complete refurbishment in order to make it operational. In addition, a number of permits or certifications had to be obtained or renewed, and various new agreements were required. The plant was recertified as a Qualifying Small Power Production Facility under Federal Energy Regulatory Commission regulations.
The interconnection with Pacific Gas & Electric Company was reestablished and new Interconnection and Special Facilities Agreements were entered with Pacific Gas & Electric Company. A Participating Generator Agreement and a Metered Service Agreement with the California Independent System Operator were entered. New permits required to begin operating the plant included a Hazardous Material Release Response Plan filed with the Madera County Environmental Health Agency and a Title V Operating Permit from the San Joaquin Valley Air Pollution Control District.
In addition, the existing Permits to Operate issued by the San Joaquin Valley Air Pollution Control District, and the Water Discharge Permit issued by the California Regional Water Quality Control Board were transferred to the new owners.
The purchase was financed by a short-term bridge loan provided by the seller, which was subsequently replaced by term loans under a loan agreement provided by EP Power Finance, L.L.C.
In addition, a portion of the refurbishment was financed by a $2 million innovative Efficiency and Renewables Grant from the California Energy Commission (CEC), the largest such grant awarded by the CEC for distribution in the summer of 2001.