Pattern Energy to acquire Broadview Wind power facility

Pattern_Energy

Pattern Energy announced it is acquiring the 324 MW Broadview Wind power facility and the associated transmission line from Pattern Development for $269 million at commencement of commercial operations.

Pattern Energy expects Broadview to generate cash available for distribution (CAFD) of approximately $28 million per year based on a five-year average run rate, before financing costs, which results in a pre-financing CAFD multiple of 9.6x for Pattern Energy’s owned capacity.

This world-class wind project will deliver attractively-priced power directly into the California market under two 20-year contracts with Southern California Edison, said Mike Garland, president and CEO of Pattern Energy.

The company can meet the funding requirements for the acquisition with a portion of the currently available cash and liquidity and from new project financing facilities.

Following the acquisition, based on its initial cash flow share, Pattern Energy will retain an owned interest of 272 MW in Broadview. Pattern Energy’s commitment to own and operate the facility was a core component of securing high-quality institutional equity investors for the project financing.

The Broadview power facility will consist of 141 Siemens 2.3 MW wind turbines and has the capacity to generate 324 MW of energy, the power equivalent to the annual energy usage of approximately 180,000 California homes. Broadview will be limited to 297 MW of injection capacity at the project’s transmission interconnection point.

Broadview has entered into two 20-year power purchase agreements (PPAs) with Southern California Edison (SCE), which has a BBB+/A2 credit rating, for sale of 100 percent of its output, up to a total of 297 MW, which has been factored into the project’s economics.

Broadview will interconnect to the new, privately-developed Western Interconnect transmission project, which will deliver the output to the California Independent System Operator (CAISO).  Western Interconnect is a 345 kV transmission line, approximately 35 miles in length, which will be 99 percent owned and operated by Pattern Energy.

Rajani Baburajan

[email protected]