Edison Mission Energy, a subsidiary of Edison Mission Group; TIAA-CREF, a financial services provider; and Cook Inlet Region Inc. (CIRI) have formed Capistrano Wind Partners LLC, a new company that will support and fund the continued growth and development of wind energy projects across North America.
Capistrano Wind Partners will invest in a diversified portfolio of U.S. wind projects, each of which will be acquired from EMG. All wind projects in the portfolio will have long-term power sales agreements in place with electric utilities and will be operational at the time of investment. EMG will manage and retain an equity interest in the portfolio.
Initial projects in the portfolio include the 61 MW Mountain Wind I project and the 80 MW Mountain Wind II project, both of which are located in Wyoming, as well as the 150 MW Cedro Hill project in Texas.
Other projects will be acquired when they become operational, including the 42 MW Crofton Bluffs project and the 80 MW Broken Bow project, which are both currently under construction in Nebraska.
Capistrano Wind Partners plans to acquire additional, new wind projects from EMG in the future, with an expectation that the portfolio will initially consist of up to seven projects with a total generation capacity of approximately 500 MW.
Total capital committed to the new company by TIAA-CREF and CIRI is currently $460 million, which includes an up-front investment of $238 million for three operating wind projects. The balance of the commitment is expected to be invested over the next year as new projects are commercialized and acquired from EMG. The funds are paid to EMG net of certain transaction expenses.
EMG companies currently own and operate a portfolio of 31 wind energy projects in commercial operation or under construction with a generating capacity of nearly 2 GW.