ALLETE Clean Energy Signs Purchase Agreement with The AES Corp. for 100.5 Megawatt Armenia Mountain Wind Facility Near Troy, ...
May 06 2015 - 8:30AM
Business Wire
ALLETE Clean Energy, a wholly-owned subsidiary of ALLETE, Inc.
(NYSE: ALE), has agreed to acquire 100 percent of AES Armenia
Mountain Wind, LLC, (Armenia Mountain) a 100.5 Megawatt (MW) wind
facility near Troy, Pa., from The AES Corporation (AES) and a
non-controlling interest from a minority shareholder for a total of
$108 million, plus the assumption of existing debt.
ALLETE Clean Energy (ACE) had an option to purchase the Armenia
Mountain facility, which was exercised on April 1; a purchase
agreement with AES was signed April 30. Closing is expected in July
2015.
Located in the busy PJM electricity market near the New
York-Pennsylvania border, Armenia Mountain’s 67, 1.5MW General
Electric wind turbines were installed in 2009. All the facility’s
energy output is sold through existing power purchase agreements
that extend through 2025.
This is the fourth wind facility ACE has acquired from AES and
the seventh in its portfolio. In January of 2014, the ALLETE
subsidiary finalized the acquisition of wind energy projects with a
total capacity of 231MW in Lake Benton, Minn., Storm Lake, Iowa,
and Condon, Ore., from AES. Armenia Mountain is the largest and
newest of the wind installations acquired by ACE.
“This acquisition continues our steady growth, with ACE’s
operating assets to total 540MW,” said ALLETE Clean Energy
President Eric Norberg. “By moving into a different area of the
country with a thriving renewable energy market, ACE builds upon
its operational and entrepreneurial experience.”
“ALLETE continues to successfully execute and integrate the
major planks within our broader energy strategy,” said ALLETE
Chairman, President and CEO Al Hodnik. “ALLETE’s combined portfolio
of operating wind assets from ACE and Minnesota Power will total
nearly 1,000 megawatts. This latest transaction reinforces our
belief that a more sustainable energy future relying less on carbon
will mold the North American energy landscape over the long
haul.”
In November of 2014, ALLETE Clean Energy also finalized a major
development agreement with Montana-Dakota Utilities, a division of
MDU Resources Group (NYSE: MDU), acquiring the rights to develop
and construct a 107MW wind facility near Hettinger, N.D., and then
sell the project to Montana-Dakota for approximately $200 million,
pending regulatory approval.
Morgan Stanley is acting as financial advisor to ALLETE Clean
Energy for this transaction.
ALLETE Clean Energy was established in 2011 to acquire or
develop capital projects to create energy solutions by way of wind,
solar, biomass, hydro, natural gas, shale resources, clean coal
technology and other emerging energy innovations.
ALLETE, Inc. is an energy company headquartered in Duluth,
Minnesota. In addition to its electric utilities, Minnesota Power
and Superior Water, Light and Power of Wisconsin, ALLETE owns
ALLETE Clean Energy, based in Duluth, BNI Coal in Center, N.D.,
U.S. Water Services in St. Michael, Minnesota, and has an eight
percent equity interest in the American Transmission Co. More
information about ALLETE is available at www.allete.com.
The statements contained in this release and statements that
ALLETE may make orally in connection with this release that are not
historical facts, are forward-looking statements. These
forward-looking statements involve risks and uncertainties and
investors are directed to the risks discussed in documents filed by
ALLETE with the Securities and Exchange Commission.
ALLETE, Inc.Amy Rutledge, 218-723-7400Manager - Corporate
Communicationsarutledge@allete.com
Allete (NYSE:ALE)
Historical Stock Chart
From Aug 2024 to Sep 2024
Allete (NYSE:ALE)
Historical Stock Chart
From Sep 2023 to Sep 2024