TransAlta Renewables Announces Acquisition of Two U.S. Wind Projects
CALGARY, Alberta (February 20, 2018) – TransAlta Renewables Inc. (“TransAlta Renewables” or the “Company”) (TSX: RNW) announced today that it has entered into an arrangement to acquire two construction-ready projects in the Northeast United States.
The wind development projects consist of: (i) a 90 MW project located in Pennsylvania which has a 15-year Power Purchase Agreement (“PPA”) and (ii) a 29 MW projected located in New Hampshire with two 20-year PPAs. All three counterparties have S&P credit ratings of A+ or better.
Total cost of the two projects is estimated to be US$240 million, of which approximately 70% will be funded in 2018 and the remainder in 2019. The commercial operation date for both projects is expected during the second half of 2019.
“This acquisition demonstrates our commitment to grow and diversify our cash flows through the addition of long-term contracted assets with high quality counterparties, and expands our presence in the United States,” said President John Kousinioris.
TransAlta Renewables will fund the acquisition and construction costs using its existing liquidity and tax equity.
- Accretive to cash available for distribution per share.
- Aligns with TransAlta’s and TransAlta Renewables’ strategy of acquiring contracted renewable power generation assets that provide stable cash flow through long-term power purchase agreements with creditworthy counterparties.
- Delivers growth that creates long-term shareholder value.
- Provides additional geographic and asset diversification.
The acquisition of the projects is subject to a number of closing conditions, including customary regulatory approvals and, in the case of the New Hampshire project, the receipt of a favourable regulatory determination in relation to the permitting of the project.
About TransAlta Renewables Inc.
TransAlta Renewables is among the largest of any publicly traded renewable independent power producers (“IPP”) in Canada. Our asset platform and economic interests are diversified in terms of geography, generation and counterparties and consist of interests in 18 wind facilities, 13 hydroelectric facilities, seven natural gas generation facilities and one natural gas pipeline, representing an ownership interest of 2,316 MW of net generating capacity, located in the provinces of British Columbia, Alberta, Ontario, Québec, New Brunswick, the State of Wyoming and the State of Western Australia. Our objectives are to (i) create stable, consistent returns for investors through the ownership of, and investment in, highly contracted renewable and natural gas power generation and other infrastructure assets that provide stable cash flow primarily through long-term contracts with strong counterparties; (ii) pursue and capitalize on strategic growth opportunities in the renewable and natural gas power generation and other infrastructure sectors; (iii) maintain diversity in terms of geography, generation and counterparties; and (iv) pay out 80 to 85 per cent of cash available for distribution to the shareholders of the Company on an annual basis.
This news release contains forward-looking statements about TransAlta Renewables’ objectives, plans, goals, intentions, strategies, prospects and opportunities. Forward-looking statements in this news release include statements relating to the completion of the acquisition of two construction-ready projects; the nature of the Company’s interest in the projects and development entities; the funding of the acquisition and construction costs, including the ability to secure tax equity; the capacity of each project; and the ability to successfully construct and develop the projects, and the timing thereof. These statements are subject to a number of risks and uncertainties that could cause actual plans, actions and results to differ materially from current expectations including, but not limited to, the Company’s ability to successfully obtain regulatory approvals; the Company’s ability to secure tax equity or other financing for the projects; changes in tax, regulatory, environmental, and other laws and regulations; competitive factors in the renewable power industry; operational breakdowns, failures, or other disruption; changes in economic and market conditions, and other risks and uncertainties discussed in the Company’s materials filed with the Canadian securities regulatory authorities from time to time. Readers are cautioned not to place undue reliance on these forward-looking statements, which reflect TransAlta Renewables’ expectations only as of the date of this news release. TransAlta Renewables disclaim any intention or obligation to update or revise these forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law.
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