Cannon Power Group has received $19.4 million in federal renewable energy grants to spur construction of its 400 MW wind farm in Washington state whose energy will be used by California municipalities.
This is the first of over $170 million in Treasury grants Cannon expects to receive in the next few months as it completes the build-out of its Windy Point/Windy Flats project. The stimulus funds are part of a program within the American Recovery and Reinvestment Act.
‘This project brought more than 300 construction jobs and additional permanent positions,’ says Gary Hardke, Cannon's president and managing director. ‘New roads also help area farmers and ranchers, and wind turbine leases generate income and a much-needed financial cushion for many area families.’
With a total investment of over $1 billion, Windy Point/Windy Flats is expected to be completed in 18 months. Last month, Cannon closed a $178 million financing deal with Siemens Financial Services Inc. to help fund an expansion of the project.
The power is being purchased by the Southern California Public Power Authority (SCPPA) under an arrangement involving SCPPA's pre-payment of a 20-year block of power, with the proceeds of tax-exempt bond issuance of over $500 million. SCPPA will also receive an option to purchase the project after five years.
SOURCE: Cannon Power Group
