California, United States — The Southern California Public Power Authority (SCPPA) signed a 20-year, $547 million contract for a block of power from a wind farm in Washington State. The project owner, Cannon Power Group, says the “pre-pay” contract is the largest of its kind.
The power will be provided from Cannon Power Group’s 262-megawatt (MW) Windy Flats wind project in Goldendale, Washington under a long-term power purchase agreement entered into last year by the parties.
The transaction involves SCPPA “pre-paying” for a 20-year block of power representing over 70 percent of the project’s expected annual production. In return for such “pre-payment,” SCPPA obtained a discounted power price. The balance of the power from the project also will be sold by Cannon Power Group to SCPPA at a formula-based price. As part of the transaction, SCPPA also received an option to purchase the project after five years.
Cannon Power Group’s Windy Flats project went on line earlier in 2010. It is part of the company’s 500 MW Windy Point/Windy Flats project. The project, one of the largest wind projects in the United States, and representing an investment of over $1.2 billion, spans over 26 miles along the Columbia River. It is expected to be completed in 2011.
Cannon Power Group received total federal stimulus grants of $220 million in connection with the project.