The Company will indirectly own an interest in IWP, a partnership among GE Energy Financial Services, Reunion Power, and Exergy Development Group, the original project developer. The wind farm project is expected to complete construction by the end of 2010.
IWP has 20-year power purchase agreements with Idaho Power Company under which all electricity produced by the wind farms will be sold at fixed prices. IWP has entered into a turnkey construction contract with Fagen Inc. a leading engineering, procurement and construction firm.
The wind turbines will be provided by GE Energy and supported by a seven-year operations and maintenance agreement. The GE 1.5 MW wind turbine is the most widely installed turbine in the world, with approximately 13,500 units installed.
"We are very pleased to be investing in our first wind power project with such strong partners who have significant industry experience. This accretive investment will further broaden and diversify our portfolio and extend the average term of our generating assets’ power purchase agreements," said Mr. Welch, Atlantic Power’s President and CEO.
"The project’s 20-year PPAs also provide Atlantic Power with stable contracted long-term cash flow with virtually no exposure to commodity prices."
The Company’s investment in IWP will be funded with cash on hand and a $20 million borrowing under its senior credit facility. Additional details about permanent financing of the project and guidance about its accretive cash flow to the Company will be released at a later date.
Atlantic Power Corporation is an independent power producer that owns interests in a diversified fleet of power generation and transmission projects located in the United States. Atlantic Power’s objectives are to maintain the stability of dividends to its shareholders and increase the long term value of the Company by enhancing the performance of its existing assets and by making accretive acquisitions.