WEC Energy Group has agreed to acquire 80% stake in the 132MW Bishop Hill III wind farm, located in Henry County, Illinois from Invenergy for an enterprise value of $148m.
The transaction is subject to approval by the Federal Energy Regulatory Commission. The wind farm was developed by Invenergy and was placed into service this May. The project has a 22 year power purchase agreement with WPPI Energy to sell 100% of the energy generated.
WPPI Energy I based in Sun Prairie, Wisconsin, is a not-for-profit company that provides electric power to 51 member utilities in Wisconsin, Michigan and Iowa. The wind farm consists of 53 General Electric turbines.
WEC Energy Group chairman and CEO Gale Klappa said: “This investment is a logical extension of our core business. WPPI has been a significant wholesale customer of ours for years, and we’re pleased to extend that relationship with a new, efficient renewable facility that exists within the Midcontinent Independent System Operator (MISO) footprint.”
As per the new tax rules, the investment by WEC Energy Group is expected to be eligible for 100% bonus depreciation and for production tax credits.
Based in Milwaukee, WEC Energy Group serves 4.5 million customers across the states of Wisconsin, Illinois, Michigan and Minnesota.
The company’s principal utilities include We Energies, Wisconsin Public Service, Peoples Gas, North Shore Gas, Michigan Gas Utilities, Minnesota Energy Resources and Upper Michigan Energy Resources. We Power, one of its major subsidiary designs, builds and owns electricity generating plants. The company has a workforce of 8,000 and more than $31bn in assets.