NorthWestern Energy has agreed to buy BayWa r.e. Wind's 80 MW Beethoven wind project for $143 million.
According to NorthWestern, the purchase includes 43 turbines and the rights to a 50 MW expansion site adjacent to the existing facility. The project was completed in May 2015.
The energy and renewable energy credits associated with this project are currently included in NorthWestern's electricity supply portfolio under two power purchase agreements (PPAs) the utility has with BayWa.
Due to the utility acquiring the wind farm outright, Northwestern says it will terminate the PPAs upon the deal's closing. NorthWestern says it will request that the wind project be placed into rate base as part of its pending electric general rate filing as a known and measurable adjustment. The rate-based cost is expected to be significantly lower than the existing PPAs, the utility notes.
The acquisition is expected to be accretive to earnings but cannot be quantified until the South Dakota Public Utilities Commission (SDPUC) makes a final determination on its general rate case. The utility anticipates a SDPUC ruling by the end of the year.
