GE Energy Financial Services has made an equity investment in a wind farm that CPV Renewable Energy Co. is developing in Oklahoma.
GE is making a $65 million preferred-equity investment to fund the construction of the CPV Keenan II wind farm, with an option to invest $100 million more in partnership equity upon commencement of commercial operations.
CPV Renewable Energy, an affiliate of Competitive Power Ventures Inc., plans to begin construction this month on the 152 MW wind farm, to be located 12 miles southwest of Woodward, Okla. The project is scheduled for completion by the end of the year.
The project, estimated to cost $319 million, will also be financed with a $212 million senior-secured credit facility jointly arranged by the Bank of Tokyo-Mitsubishi and Union Bank. Participating in the lending syndicate are the Bank of Tokyo-Mitsubishi, Union Bank, Key Bank, Helaba, LBBW, Natixis and Rabo Bank.
The project has secured a 20-year power purchase agreement with Oklahoma Gas & Electric Co. and is also expected to receive a production tax credit.
SOURCE: GE Energy Financial Services