Atlantic Power, an independent power producer, has planned to purchase a 27% ownership interest in Idaho Wind Partners 1 (IWP), a partnership among GE Energy Financial Services, Reunion Power, and Exergy Development Group, for approximately $40m.
The company plans to fund the investment by borrowing $20m under its senior credit facility and the rest with cash on hand.
IWP has recently started construction on an 183MW wind power project comprising of 11 wind farms located near Twin Falls, Idaho, and expects to complete construction by the end of 2010.
Fagen, an engineering, procurement and construction firm, has been contracted for the construction of the project. GE energy will be supplying 1.5 MW wind turbines for the project and will also be responsible for their operations and maintenance for seven years.
IWP has entered into 20-year power purchase contacts with Idaho Power Company under which IWP will sell the electricity produced by the wind farms at fixed prices.
Welch, president and CEO of Atlantic Power, said: “We are very pleased to be investing in our first wind power project with such strong partners who have significant industry experience. This accretive investment will further broaden and diversify our portfolio and extend the average term of our generating assets’ power purchase agreements.”