Atlantic Power Corp to make first investment in wind energy

July 13, 2010

Electricity producer Atlantic Power Corporation is investing in its first wind project, with the purchase of a 27% stake in 11 wind farms being built in Idaho.

The company will pay $40 million for the ownership interest in Idaho Wind Partners 1, LLC.

The development company is a partnership between GE Energy Financial Services, Reunion Power and the original developer of the project, Exergy Development Group.

Boston-based Atlantic Power Corporation joins the partnership after it began construction last month on the 183-megawatt wind project near Twin Falls, Idaho.

Construction is expected to be completed by the end of 2010, carried out by Fagen, Inc., and using GE 1.5MW wind turbines.

Power

The wind developers have 20-year power purchase agreements in place to sell power to the Idaho Power Company at fixed prices.

Patrick Welch, the President and CEO at Atlantic Power Corp, said the investment would broaden his company’s portfolio of generating projects.

He said: “The project’s 20-year PPAs also provide Atlantic Power with stable contracted long-term cash flow with virtually no exposure to commodity prices.”

At present, Atlantic Power’s portfolio is largely comprised of natural gas power plants, with some coal interests. The company also has 50% stakes in two small hydropower stations in Maine and in Washington State.