Innergex Renewable Energy Inc.is pleased to announce the signing of a 30-year, 320 MW power purchase agreement ("PPA") with PacifiCorp, a Berkshire Hathaway subsidiary, for the electricity to be produced by the Boswell Springs wind project located in eastern Wyoming. The commercial operation date is scheduled during Q4 2024.
"The execution of the Boswell Springs PPA with PacifiCorp is a significant milestone for the project and Innergex's development efforts in the United States. The contract will provide Innergex with long-term revenue certainty with a high quality, well-capitalized utility," said Michel Letellier, President and Chief Executive Officer of Innergex. "Once constructed, Boswell Springs promises to contribute to improving our payout ratio and to make a significant contribution to the decarbonization targets of the western states, where Innergex sees growing opportunities."
The Boswell Springs project was selected in response to a competitive solicitation in PacifiCorp's 2020 All-Source Request for Proposals, issued in July 2020 and is expected to benefit from 100% of the US Production Tax Credits ("PTCs"). Total construction costs of the Boswell Springs wind project are expected to amount to US$544 million (CAN$702 million).
Excluding any financing structure which have yet to be concluded, operating cash flows from the Boswell Springs wind project are expected to reach approximately US$22.6 million (CAN$29.2 million) on an annual basis. Also, the project is expected to contribute an annual approximative US$39.2 million (CAN$50.6 million) from PTCs, which is indexed to inflation.
The Boswell Springs PPA's effectiveness is subject to the Wyoming Public Service Commission's final written order granting the Certificate of Public Convenience and Necessity for Gateway South.