Utilities, Industrial, Wind - August 19, 2022
PacifiCorp Signs PPA
PacifiCorp, a Berkshire Hathaway subsidiary, signed a 30-year, 320 MW PPA for the electricity to be produced by the Boswell Springs wind project located in eastern Wyoming with Innergex Renewable Energy Inc.
The commercial operation date is scheduled during the fourth quarter of 2024. PacifiCorp is a regional power provider serving customers in six western states,
“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, CEO of Innergex in a statement. “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 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 and the project is expected to contribute an annual approximative US$39.2 million (CAN$50.6 million) from PTCs, which is indexed to inflation.