Atlantic Power Corp. plans to purchase a 27% ownership interest in Idaho Wind Partners I LLC (IWP) for approximately $40 million. IWP recently commenced construction of the 183 MW wind power project comprising 11 wind farms, located near Twin Falls, Idaho.
The company will indirectly own an interest in IWP – a partnership between GE Energy Financial Services, Reunion Power and Exergy Development Group, which is the original project developer. The project is expected to be completed by the end of the year.
IWP has 20-year power purchase agreements with Idaho Power Co. 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., an 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 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 cashflow to the company will be released at a later date.
SOURCE: Atlantic Power Corp.