ABB_id2059
in News Departments > Projects & Contracts
print the content item

NRG Yield Inc. has entered into an agreement with Terra-Gen Power LLC to acquire the Alta Wind Energy Center (AWEC) in California for $870 million. According to the companies, the multi-phase wind farm is the largest in North America.

The acquisition, which totals 947 MW of operating wind capacity, also includes a portfolio of land leases associated with the Alta Wind facility. The AWEC is made up of several phases and features 386 GE and Vestas turbines, with commercial operations achieved within the past four years. The facility has long-term power purchase agreements with utility Southern California Edison.

This transaction will grow the combined wind portfolio owned by NRG Yield and its parent, NRG Energy, to about 2.84 GW. NRG Yield says it intends to fund the purchase price through a combination of newly issued debt, common equity and cash on hand.

“Alta Wind is a landmark investment for NRG Yield,” comments David Crane, NRG Yield’s chairman and CEO. “The acquisition of the largest wind facility on the North American continent highlights not only our commitment to carbon-free generation, but also the strength of our acquisition capabilities to compete for contracted assets of world-class quality in the competitive marketplace.”

Bank of America Merrill Lynch acted as exclusive financial advisor to NRG Yield in relation to this transaction, and Jones Day served as legal counsel to the company.

Terra-Gen says it will use proceeds from the sale to repay outstanding indebtedness under the Terra-Gen Finance credit facility to make distributions to its owners and for additional corporate purposes. Terra-Gen Operating Co. will continue to provide asset management and operations and maintenance services AWEC after the sale.

Citigroup and Morgan Stanley advised on the sale. Latham & Watkins served as Terra-Gen's lead transaction counsel.

The transaction is subject to customary closing conditions, including the receipt of regulatory approval by the Federal Energy Regulatory Commission, the U.S. Department of Justice and the Federal Trade Commission under the Hart-Scott-Rodino Act, as well as a notice of the acquisition to the California Public Utilities Commission. NRG and Terra-Gen say they expect to close the deal in the third quarter of this year.




IOWA Economic Development id2073

Trachte_id2056
Latest Top Stories

The Song Remains The Same: AWEA Says Stable Policy Can Protect U.S. Wind Investment

Although the U.S. wind industry added more than four times the amount of wind in 2014 compared with 2013, predictable policy is needed to sustain its long-term success.


High Net-Worth Investors Claim 'All Of The Above' On Energy, Renewable And Otherwise

According to a recent Morgan Stanley poll, high-dollar investors favor investment in renewable energy technologies, such as wind and solar.


U.S. Wind Power Installations Surpassed 4.7 GW Last Year, Although China Still Leads

Bloomberg New Energy Finance reports that U.S. wind installations came back in a big way from a disappointing 2013.


IRS Specifies Performance, Quality Standards For Small Wind Turbines

The Internal Revenue Service (IRS) recently issued guidelines creating safety and performance standards for small wind turbines to be eligible for the 30% investment tax credit.


Hot Times North Of The Border: Canada Tops Previous Record For Installed Wind Capacity

For the second consecutive year, Canada's wind market has bested the country's previous mark for new installations.

Hybrid Energy Innovations 2015