First Wind has signed a long-term power purchase agreement (PPA) and construction financing for its Milford II wind project.
Completed on Oct. 18, the PPA with the Southern California Public Power Authority (SCPPA) to supply the cities of Los Angeles and Glendale with renewable energy represented a significant milestone for the Milford II project.
Once completed, the second phase of the project will add to the renewable energy that is being produced and delivered to Los Angeles, Burbank and Pasadena through the first phase of the project.
The 102 MW expansion will utilize the 88-mile generator lead that was built from the project to the Intermountain Power Plant in Delta, which then connects the site to the electrical grid.
‘This PPA for Milford II is significant, as it builds on the successful long-term PPA we signed in 2007 for Milford I, which at its time was a landmark for a publicly owned utility,’ says Bill D. Carnahan, executive director at the SCPPA.
‘As with the Milford I PPA, SCPPA will contract with First Wind for the long-term agreement, prepay for the energy, and sign power sales agreements with the participants to sell them the output of the project to repay SCPPA's costs including the ongoing operating expenses,’ he adds.
In addition to the PPA, First Wind secured financing for the project. RBS Securities Inc. was lead arranger and bookrunner for this loan. The following banks acted as joint lead arrangers for the financing: Banco Espirito Santo SA, Santander Investment Securities Inc., CoBank, ACB and SG Americas Securities, LLC.
SOURCE: First Wind