Innergex Renewable Energy Inc (TSX:INE)
Shares Issued 204,116,917
Last Close 8/15/2022 $19.44
Tuesday August 16 2022 - News Release
Mr. Jean Trudel reports
INNERGEX SIGNS A LONG-TERM POWER PURCHASE AGREEMENT FOR THE BOSWELL SPRINGS WIND PROJECT LOCATED IN THE STATE OF WYOMING
Innergex Renewable Energy Inc. has signed a 30-year 320-megawatt 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.
About Innergex Renewable Energy Inc.
For over 30 years, Innergex has believed in a world where abundant renewable energy promotes healthier communities and creates shared prosperity. As an independent renewable power producer which develops, acquires, owns and operates hydroelectric facilities, wind farms, solar farms and energy storage facilities, Innergex is convinced that generating power from renewable sources will lead the way to a better world. Innergex conducts operations in Canada, the United States, France and Chile and manages a large portfolio of high-quality assets currently consisting of interests in 84 operating facilities with an aggregate net installed capacity of 3,484 MW (gross 4,184 MW) and an energy storage capacity of 159 MWh, including 40 hydroelectric facilities, 35 wind farms, 8 solar farms and 1 battery energy storage facility. Innergex also holds interests in 13 projects under development, with a net installed capacity of 731 MW (gross 768 MW) and an energy storage capacity of 745 MWh, 3 of which are under construction, as well as prospective projects at different stages of development with an aggregate gross installed capacity totaling 7,495 MW. Its approach to building shareholder value is to generate sustainable cash flows, provide an attractive risk-adjusted return on invested capital and to distribute a stable dividend.
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