Cannon Power Group has closed the sale of a 20-year block of renewable power to Southern California Public Power Authority (SCPPA) for $547 million. The power will be provided from Cannon Power Group's 262 MW Windy Flats wind project in Goldendale, Wash., under a long-term power purchase agreement entered into last year by the parties.
The transaction involves SCPPA prepaying for a 20-year block of power, representing over 70% of the project's expected annual production. In return for the pre-payment, SCPPA obtained a discounted power price. The balance of the power from the project also will be sold by Cannon Power Group to SCPPA at a formula-based price. As part of the transaction, SCPPA also received an option to purchase the project after five years.
Cannon Power Group's Windy Flats project went online earlier in this year. It is part of the company's 500 MW Windy Point/Windy Flats project. The project, representing an investment of over $1.2 billion, spans over 26 miles along the Columbia River. It is expected to be completed in 2011 and has provided over 350 new jobs to the local area, according to the company. Cannon Power developed and constructed the project.
SOURCE: Cannon Power Group