Pattern Energy Group Inc. has committed to acquire interests in the 324 MW Broadview Wind power facility and an associated transmission line from Pattern Energy Group LP (Pattern Development).
Broadview Wind, located 30 miles north of Clovis, N.M., is currently under construction. Pattern Energy has committed to acquire from Pattern Development an 84% initial cash flow interest in Broadview and a 99% ownership interest in the 35-mile, 345 kV Western Interconnect transmission line for a total cash purchase price of $269 million, which will be funded at the commencement of commercial operations in less than a year.
Pattern Energy expects Broadview to generate cash available for distribution of approximately $28 million per year. The project will interconnect to the new, privately developed Western Interconnect transmission project, which will deliver output to the California Independent System Operator.
“Broadview is a terrific addition to the company – representing a 12 percent increase to our current portfolio’s owned capacity and a material, accretive increase in our cash available for distribution,” comments Mike Garland, president and CEO of Pattern Energy. “We identified this opportunity earlier this year as a transaction we would likely commit to acquire when it reached [commercial operations]. We can meet the funding requirements for the acquisition with a portion of our currently available cash and liquidity and from new project financing facilities.”
Institutional equity investors have committed to acquire from Pattern Development a 16% initial cash flow interest in and a 99% initial taxable income allocation from Broadview.
Following the acquisition, based on its initial cash flow share, Pattern Energy will retain an owned interest of 272 MW in Broadview.
Through two 20-year power purchase agreements with Southern California Edison, the facility, consisting of 141 Siemens 2.3 MW wind turbines, will generate power equivalent to the annual energy usage of approximately 180,000 California homes. Broadview will be limited to 297 MW of injection capacity at the project’s transmission interconnection point.