The Projects were selected by SaskPower for award of power purchase agreements in accordance with the SaskPower Green Options Partners Program in May 2010. Upon SaskPower’s approval and execution of the PPAs, Kineticor will assign the PPAs to Algonquin Power Co. ("APCo"), APUC’s electric generation subsidiary. The Projects will be developed with support from Kineticor during the development phase, which is expected to be completed in late 2013.
The total annual energy production for the Projects is estimated to be 75,000 MW-hrs. While equipment selection and construction details remain to be finalized, it is expected that the capital cost to construct the Projects will be approximately $55-$60 million, inclusive of acquisition costs. The first year PPA rate is set at $101.98 per MW-hr for the first full year of operations, which APCo expects to occur in 2014, with an annual escalation provision of 2% over the expected 20 year term.
The Projects are to be constructed near Morse, Saskatchewan, approximately 180 km west of Regina and 400 km west of the Phase I Red Lily Wind Power Project. It is contemplated that the Projects will be situated on 1,120 acres of private lands, with additional land under lease or option in order to facilitate future expansion of the Projects.
"We are very pleased that we are able to continue to grow our wind energy footprint in the province of Saskatchewan with this latest acquisition", commented Ian Robertson, Chief Executive Officer of APUC. "Saskatchewan has one of the best wind regimes in Canada which will once again contribute to our growing portfolio of successful wind energy projects and reinforce our strategic focus on renewable energy investment."
Through its distinct operating subsidiaries, APUC owns and operates a diversified portfolio of $1.1 billion of clean renewable electric generation and sustainable utility distribution businesses in North America. Liberty Water Co., APUC’s water utility subsidiary, provides regulated water utility services to more than 70,000 customers with a portfolio of 19 water distribution and wastewater treatment utility systems.
Through its wholly owned subsidiary Liberty Energy Utilities Co., APUC provides regulated electricity and natural gas distribution services, currently serving more than 47,000 electric customers in the Lake Tahoe, CA area. Pursuant to previously announced agreements, Liberty Energy Utilities Co. is committed to acquiring Granite State Electric Company, a New Hampshire electric distribution company, and EnergyNorth Natural Gas Inc., a regulated natural gas distribution utility, which together serve approximately 130,000 customers.
Algonquin Power Co., APUC’s electric generation subsidiary, includes 45 renewable energy facilities and 12 thermal energy facilities representing more than 460 MW of installed capacity. APUC and its operating subsidiaries deliver continuing growth through an expanding pipeline of greenfield and expansion renewable power and clean energy projects, organic growth within its regulated utilities and the pursuit of accretive acquisition opportunities. APUC’s common shares and convertible debentures are traded on the Toronto Stock Exchange under the symbols AQN, AQN.DB, AQN.DB.A and AQN.DB.B.