Pattern Energy Group has committed to acquire interests in the 324 MW Broadview Wind power facility and associated independent 35 mile 345 kV Western Interconnect transmission line from Pattern Development, which has closed financing and is beginning construction on Broadview.
To be more specific, Pattern Energy has committed to acquire from Pattern Development an 84% initial cash flow interest in Broadview and a 99% ownership interest in the Western Interconnect transmission line for a total cash purchase price of US$269 million, which will be funded at the commencement of commercial operations (COD) in less than a year.
The Broadview power facility, which is located 30 miles north of Clovis, New Mexico (USA), will consist of 141 Siemens 2.3 MW wind turbines and has the capacity to generate 324 MW of energy, the power equivalent to the annual energy usage of approximately 180,000 California homes. Broadview will be limited to 297 MW of injection capacity at the project's transmission interconnection point.
Broadview has entered into two 20-year power purchase agreements (PPAs) with Southern California Edison (SCE) for sale of 100 percent of its output, up to a total of 297 MW.
Broadview will interconnect to the new, privately-developed Western Interconnect transmission project, which will deliver the output to the California Independent System Operator (CAISO). Western Interconnect is a 345 kV transmission line, approximately 35 miles in length, which will be 99% owned and operated by Pattern Energy.
The combined cash available for distribution from the project and transmission line, before any financing costs, is expected to be approximately US$28 million annually based on a five-year average run rate.
Mike Garland, President and CEO of Pattern Energy, said:
"This world-class wind project will deliver attractively-priced power directly into the California market under two 20-year contracts with Southern California Edison. Broadview is a terrific addition to the Company; representing a twelve percent increase to our current portfolio's owned capacity and a material, accretive increase in our cash available for distribution. We identified this opportunity earlier this year, as a transaction we would likely commit to acquire when it reached COD. We can meet the funding requirements for the acquisition with a portion of our currently available cash and liquidity and from new project financing facilities. Our commitment is to provide dividends, especially in uncertain markets, and this project supports that commitment."