Electrical Line RSS Feed Algonquin Power Announces 25-year Power Purchase Agreement with SaskPower for 177 Megawatt Wind Power Project

    Algonquin Power & Utilities Corp. announces Algonquin Power Co. (APCo), APUC's power generation subsidiary, as the successful proponent under Saskatchewan Power Corporation's (SaskPower) Request for Proposal CO/690.

    APCo's 177 megawatt Chaplin Wind Project will be located in the Rural Municipality of Chaplin, Saskatchewan, 200 km west of Regina, Saskatchewan, with construction completion targeted for December 2016. The Project will be constructed at an estimated capital cost of $355 million 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 $37.5 million. 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% of the tariff in the preceding year. The Project was jointly originated in 2009 by APCo and Gaia Power Inc.

    "Achieving this award in the SaskPower RFP process is both exciting and significant to the size and long term contracted nature of APCo's renewable energy portfolio", commented Ian Robertson, Chief Executive Officer of APUC. "We are very pleased with the continuing growth of our wind energy portfolio in the Province of Saskatchewan and the benefits of its excellent wind regime."

    www.AlgonquinPowerandUtilities.com

    SOURCE: CNW Group Ltd.

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