North American Windpower: Western Wind Energy Receives Supplemental Section 1603 Payment

Western Wind Energy Receives Supplemental Section 1603 Payment

by NAW Staff on Monday 03 December 2012

Western Wind Energy Corp. says its wholly owned subsidiary Windstar Energy LLC has been awarded a supplemental tax-free payment in the amount of $4,132,980 under U.S. Treasury's Section 1603 cash-grant program for the 120 MW Windstar wind farm, located in Tehachapi, Calif.

The Treasury Department has notified Western Wind that the payment will likely be made during the week of Dec. 10. With this supplemental payment, the total Section 1603 payment is consistent with a qualified basis that includes a development fee of 10% of Windstar's claimed pre-development-fee qualified basis, Western Wind says.

However, according to Western Wind, this supplemental payment only partially offsets the Treasury's original reduction. In July, Western Wind received a Section 1603 cash grant for $78.3 million but said that was $13.2 million less than the amount for which the company had applied.

The Treasury has offered to meet with Western Wind's management and advisers to further discuss and explain this supplemental payment, the company says.

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