Algonquin and Sask agree on 177 MW wind power project

Algonquin Power (APCo) (TSX: AQN) has announced a 25 year Power Purchase agreement with SaskPower for a 177 MW Wind Power Project.

The Chaplin Wind Project ("The Project") will be located in the Rural Municipality of Chaplin, Saskatchewan, 200 km west of Regina, Saskatchewan, Canada with construction completion targeted for December 2016.

The Project will be constructed at an estimated capital cost of $355m and consist of approximately 77 multi-megawatt wind turbines.

The Project enjoys an excellent wind resource, consistent with APCo's existing wind power projects in the province, and will satisfy the energy needs of approximately 70,000 homes.

The Project is expected to generate first full year EBITDA of $37.5m.

All energy will be sold under a 25 year power purchase agreement between SaskPower and APCo's wholly owned subsidiary Windlectric Inc.

The agreement features an annual commercial power purchase rate escalation of 0.6 per cent of the tariff in the preceding year. The Project was jointly originated in 2009 by APCo and Gaia Power Inc.

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