PGE Enters Discussions to Purchase Rights to Wind Energy Plant (400 MW)

Portland General Electric Company (NYSE:POR) has entered into a preliminary agreement with Renewable Energy Systems Americas Inc. (RES Americas) to negotiate purchase of the development rights assets for the Rock Creek Wind Farm in Gilliam County, Oregon. The agreement gives PGE exclusive rights to purchase the wind power project through the end of 2010.

“We’re going to need significant new renewable generating resources in coming years as we work to meet Oregon’s renewable energy standards,” said Jim Lobdell, PGE vice president for power operations and resource strategy.

“Good renewable sites are highly sought after, so we are pleased to have reached preliminary agreement on certain terms with RES Americas and look forward to working with them in the coming months to see if we can arrive at a final agreement that serves our customers’ best interests.”

RES Americas is currently pursuing state permits for the proposed facility, which would occupy leased sites south of Arlington and north of Condon, in eastern Oregon, and have a nameplate energy production capacity of 400 to 550 megawatts, depending on the size and number of wind turbines.

The wind power facility may encompass up to 68,000 acres, although as with other wind farms most of the land would still be available for agriculture or other productive uses, depending on specific turbine sites. RES Americas anticipates that construction could begin as early as 2013, but is more likely to occur in phases beginning in 2014 or 2015.

PGE has filed a request with the Oregon Public Utility Commission for a waiver of the commission’s competitive bidding guidelines with regards to the project. PGE is seeking the waiver because of the length of time that would be required to complete the competitive bidding process and the limited duration of PGE’s exclusivity period to act on this opportunity.

Specific terms of the preliminary agreement with RES Americas have been filed with the OPUC, but are expected to remain confidential until and unless the parties sign a definitive agreement and satisfy related conditions.

Portland General Electric, headquartered in Portland, Ore., is a fully integrated electric utility that serves approximately 822,000 residential, commercial and industrial customers in Oregon.

Renewable Energy Systems Americas Inc. (RES Americas), is a fully-integrated renewable energy company that develops, constructs, owns, and operates projects across North and South America. RES Americas has constructed more than 3,900 MW of wind energy, which represents more than 10% of the operating installed wind capacity in the US, is constructing more than 950 MW, and has over 12,500 MW in development.

RES Americas’ corporate office is located in Broomfield, CO with regional offices located in Austin, TX; Portland, OR; Minneapolis, MN. Canadian projects are managed from Montréal, Québec, by RES Canada. RES Americas continues to seek new locations for wind and solar projects as well as opportunities to participate in other forms of renewable energy.