Opinion ID: 4854156
Heading Depth: 3
Heading Rank: 3

Heading: Sale Transactions

Text: Next, we must determine whether the NRG and GIP transactions caused the Project Entities to violate the PPAs. Based on the PPAs’ plain terms, we conclude 3 In this case, we apply the same principles to LLCs as used in cases dealing with corporations. Streck, Inc. v. Ryan Fam., L.L.C., 901 N.W.2d 284, 293 (Neb. 2017) (“[W]e have generally treated actions by a member of an LLC in the same manner as actions by a shareholder of a corporation.”). -9- that the Project Entities did not transfer their direct ownership interests to NRG or GIP and did not violate the change-of-control provision of the PPAs. The transfer of the ownership interests of the Project Entities’ parent companies did not trigger the change-of-control provision in the PPAs. Engel v. Teleprompter Corp., 703 F.2d 127, 134 (5th Cir. 1983) (“[T]ransfer of the stock of a parent corporation does not affect the ownership of assets held by a subsidiary.”). Traditionally, a corporate parent who owns shares of a subsidiary does not own or have legal title over the subsidiary’s assets. See Janvey, 840 F.3d at 263–64 (“A corporate parent which owns the shares of a subsidiary does not, for that reason alone, own or have legal title to the assets of the subsidiary.”). Corporate parents are separately established and must be treated accordingly. See Engel, 703 F.2d at 134 (“[O]wnership of the stock of a corporation is not synonymous with ownership of the corporate assets.”); Janvey, 840 F.3d at 263–64 (“Subsidiaries that are ‘established as juridical entities distinct and independent . . . should normally be treated as such.’”) (abrogated on other grounds). We conclude that the transfer of the Project Entities’ parent companies, from Edison to NRG to GIP, did not transfer the “direct ownership interests” of each of the Project Entities. Thus, we conclude that the Project Entities did not need to obtain NPPD’s written consent for each of the transactions involving its upstream parent companies, and that the transfer of the ownership interests at the parentcompany level did not trigger a change of control under the PPAs.