Portland General Electric (PGE, NYSE: POR) completed the competitive bidding processes and negotiations to build a natural gas-fired power project in Oregon and acquire and build a wind farm in Washington state.
PGE signed an agreement to build the new 440 MW Carty natural gas-fired power plant adjacent to the Boardman coal-fired power plant. The new plant is expected to cost between $440 million and $455 million, excluding allowance for funds used during construction. Abengoa S.A. will lead the construction. The plant will use a Mitsubishi Power Systems Americas Inc. G-class turbine, and PGE signed a separate long-term service agreement for the plant. PGE will own and operate the plant, which is expected to be up and running in 2016. PGE agreed to stop using coal at the Boardman plant by the end of 2020.
PGE also signed an asset purchase agreement to acquire the development rights to phase two of the planned 267 MW Lower Snake River wind farm in Washington State. RES Americas Construction will develop the project using 116, 2.3 MW Siemens (NYSE: SI) wind turbines. The deal is expected to close in August 2013 with completion of the project scheduled for 2015.
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