California Wind Farm Development Acquired

PPM Energy announced plans to build a new 150 MW wind farm in northern California. The project is expected to be commercially operational in 2005, just in time to qualify for the federal wind power tax credit, currently set to expire by the end of the year.

PPM acquired the fully permitted Shiloh Wind Project in Solano County from enXco, an affiliate of EDF Energies Nouvelles of France. The capital invested in this project is expected to be approximately USD $235 million. Shiloh is strategically located between major customer centers in San Francisco and Sacramento, and near the operating 162 MW High Winds Energy Center, from which PPM buys all the output for supply to wholesale customers. Currently under negotiation, the energy from the Shiloh project is expected to be sold under long-term agreements. PPM balances its supply portfolio with sales to wholesale customers, with approximately 90 percent of the company’s existing wind resource sold under long-term contracts. “PPM is delighted to be leading a strong wind industry in 2005,” Terry Hudgens, chief executive officer of PPM. “We are in this position due to strong customer demand and competitive energy pricing aided by a federal Production Tax Credit. “We encourage Congress to extend the tax credit through legislation that ensures that wind energy is competitive against hydrocarbon energy receiving substantial tax benefits.” “enXco has been devoted to make this wind project right for the community in Northern California since it began development on the project in 2002,” said David Corchia, chief executive officer of enXco. “We are delighted to take this one step further in our relationship with PPM and add 150 MW of capacity to the long enXco development achievement list.” enXco develops, constructs, operates and manages wind energy projects throughout the United States. The company owns a total of 298 MW of wind-energy installations in the United States. It is also one of the largest O&M providers for wind farms, currently servicing more than 4,000 turbines and more than 1,000 MW. Since 2002, enXco has been an affiliate of EDF Energies Nouvelles.EDF Energies Nouvelles is the renewable arm of EDF Group and is 50% owned by EDF (France). With a primary focus on wind energy, EDF Energies Nouvelles is also active in mini-hydro, solar and biomass. It has built up leading positions in the European Union and the United States with 800 MW in operation and 400 MW under construction in 2005. PPM currently controls approximately 830 MW of wind power in seven states. When combined with previously announced projects, Shiloh’s 150 MWs brings PPM’s total new wind projects under construction to 574 MW in 2005. This will put a total of approximately 1,400 MW of wind energy under PPM’s control, well on target toward the company’s goal of bringing online 2,300 MW of wind power by 2010. The wind farm is subject to completion of certain transmission and related power sale arrangements.
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