Algonquin Power & Utilities Corp. (APUC) (TSX: AQN), has announced the closing of the acquisition of the remaining 40% of the 400 MW wind power portfolio (the Projects) in the United States from Gamesa Wind US, LLC for total consideration of approximately US$115 million.
Prior to today, APUC owned a 60% controlling interest in the Projects which were originally acquired through a newly formed partnership whose original members included APCo, Gamesa and certain tax equity investors. The 400 MW wind portfolio consists of three facilities, Minonk (200 MW), Senate (150 MW), and Sandy Ridge (50 MW) located in the states of Illinois, Texas, and Pennsylvania, respectively.
APUC has been the majority owner and manager of the Projects since 2012 when commercial operation was achieved, therefore no additional ongoing management or administrative costs are expected to be incurred. Gamesa will continue to provide operations, warranty and maintenance services for the wind turbines and balance of plant facilities under 20 year contracts.
Substantially all of the energy from the Projects is sold under fixed price power sales contracts including long term hedge agreements with a remaining weighted average life of 11 years; ancillary services including capacity and renewable energy credits are contracted into the energy markets in which the facilities are located.
"With little additional overhead costs anticipated, we expect investment in the full ownership of this portfolio of high quality wind assets to contribute accretive, low risk earnings and cash flow to APUC", commented Chief Executive Officer Ian Robertson. "We are very pleased to be the sole owner of these assets and we see tremendous opportunity to grow our portfolio by leveraging the expertise we have gained in the U.S. power markets in which these wind facilities operate".
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