Walmart to purchase majority of power at Pattern Energy's fourth operational wind facility in Texas
SAN FRANCISCO, Sept. 28, 2015 /CNW/ -- Expanding its operations in Texas, Pattern Energy Group Inc. (NASDAQ: PEGI) (TSX: PEG) (the "Company" or "Pattern Energy"), today announced that its 200 megawatt (MW) Logan's Gap Wind facility in Comanche County, Texas, has completed construction and is fully operational.
- The 200 MW project has completed construction and is fully operational
- Long-term power purchase agreement with Walmart
- Portfolio now comprises 15 operating wind facilities and one construction project
"Logan's Gap Wind is our fourth operational wind power facility in Texas and we are now serving three different regions throughout the state," said Mike Garland, CEO of Pattern Energy. "We continue to bring new facilities online both on time and on budget, demonstrating our ability to execute on our growth strategy. We are pleased to be working with one of the leading corporations in the world as it acquires renewable energy and lowers its carbon footprint. We are increasingly partnering with America's leading companies as they recognize that wind power, which continues to decline in cost, is both good for the environment and good for business."
"Walmart has a goal to be supplied by 100 percent renewable energy, and sourcing from wind energy projects — like the Logan's Gap Wind Facility — is a core component in the mix," said Mark Vanderhelm, vice president of energy for Walmart. "The energy we'll procure from this facility represents nearly one-fifth of the U.S. portion of our goal to source seven billion kilowatt hours of renewable energy by 2020. That's a significant leap forward on our renewable energy journey."
Pattern Energy has an owned interest of 164 MW in the facility and four institutional tax equity investors have acquired the balance. The facility is financed with all equity rather than project debt.
The facility will sell 75% of the electricity produced to Walmart and a financial institution. Walmart has a 10-year power purchase agreement to acquire 58% of the expected output from the facility. Seventeen percent of the expected output will be sold under a 13-year fixed price agreement with a A-/Baa2-rated financial institution. The remaining 25% of expected output will be sold at ERCOT spot market prices.
An average of 250 workers were on site during construction with up to 550 workers on site during peak activity. There are 12 full-time permanent workers to operate and maintain the facility. Consisting of 87 Siemens 2.3 MW wind turbines, with a total capacity of 200 MW, Logan's Gap Wind will create enough clean energy to power 50,000 homes in Texas each year, according to average annual residential energy use data from the U.S. Energy Information Administration.
Located in ERCOT's North Zone, the Logan's Gap Wind facility connects to Oncor's 138kV ComancheZephyr line, which crosses the facility site and supplies power to the Dallas-Fort Worth area.
Pattern Energy acquired the Logan's Gap Wind facility from Pattern Energy Group LP (Pattern Development) in December 2014. Pattern Energy has rights of first offer to Pattern Development's entire project development pipeline, which totals more than 5,900 MW.
About Pattern Energy
Pattern Energy Group Inc. is an independent power company listed on The NASDAQ Global Select Market and Toronto Stock Exchange. Pattern Energy has a portfolio of 16 wind power facilities with a total owned interest of 2,282 MW in the United States, Canada and Chile that use proven, best-in-class technology. Pattern Energy's wind power facilities generate stable long-term cash flows in attractive markets and provide a solid foundation for the continued growth of the business. For more information, visit www.patternenergy.com.
Cautionary Statement Regarding Forward-Looking Statements
Certain statements contained in this press release constitute "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995 and "forward-looking information" within the meaning of Canadian securities laws, including statements regarding the ability of Walmart to achieve a goal to be supplied by 100 percent renewable energy, the number of ongoing permanent positions created by the facility, and the number of homes for which the facility will be able to create clean energy to power. These forward-looking statements represent the Company's expectations or beliefs concerning future events, and it is possible that the results described in this press release will not be achieved. These forward-looking statements are subject to risks, uncertainties and other factors, many of which are outside of the Company's control, which could cause actual results to differ materially from the results discussed in the forward-looking statements.
Any forward-looking statement speaks only as of the date on which it is made, and, except as required by law, the Company does not undertake any obligation to update or revise any forward-looking statement, whether as a result of new information, future events or otherwise. New factors emerge from time to time, and it is not possible for the Company to predict all such factors. When considering these forward-looking statements, you should keep in mind the risk factors and other cautionary statements in the Company's annual report on Form 10-K and any quarterly reports on Form 10-Q. The risk factors and other factors noted therein could cause actual events or the Company's actual results to differ materially from those contained in any forward-looking statement.
SOURCE Pattern Energy Group Inc.