ALLETE Clean Energy, Xcel Energy Sign 100 MW Power Purchase Agreement for New North Dakota Wind Farm
March 16 2017 - 11:00AM
Business Wire
Project will expand ACE wind portfolio to 640
MW across five states
ALLETE Clean Energy, a wholly-owned subsidiary of ALLETE Inc.
(NYSE: ALE), today announced its plan to build, own and operate a
100-megawatt wind farm in Morton and Mercer counties in North
Dakota that will supply electricity to Xcel Energy under a signed
power purchase agreement.
Under development since 2011, the Clean Energy 1 project located
north of Glen Ullin, North Dakota, has been permitted by the North
Dakota Public Service Commission and has landowner agreements in
place. Construction is expected to begin in 2018 under a 20-year
power purchase agreement between ALLETE Clean Energy and Xcel
Energy. The project will be built with the latest wind turbine
technology to maximize production and is expected to be complete in
2019. The PPA is subject to regulatory approval.
To qualify for federal renewable energy production tax credits,
the project may utilize a share of wind turbines ALLETE Clean
Energy purchased in 2016 that meet the standards for the tax credit
“Safe Harbor” provision. The $100 million investment in safe harbor
turbines allows ALLETE Clean Energy to pursue its three-pronged PTC
strategy that includes building and operating new wind farms based
on long-term PPAs, building wind farms for other companies for a
development fee or a sale price, and refurbishing its existing wind
farms while extending power sales agreements.
ALLETE Clean Energy also supplies wind power to Xcel Energy
through purchase agreements at ALLETE Clean Energy’s
Chanarambie/Viking and Lake Benton wind farms in Minnesota.
“We are excited to partner with Xcel Energy to deliver
additional low-cost wind resources to serve their customers," said
Allan S. Rudeck Jr., president of ALLETE Clean Energy. “This
additional PPA with Xcel Energy demonstrates ALLETE Clean Energy is
an established and trusted brand in the renewable energy market
that is executing its multifaceted growth strategy on a national
level. We will work closely with area landowners, county officials
and state regulators as we harness North Dakota’s world-class wind
resources.”
ALLETE Clean Energy owns and operates wind generation facilities
in Minnesota, Iowa, Oregon and Pennsylvania that were purchased
from other companies. It also developed the 107.5-megawatt Thunder
Spirit wind farm in North Dakota, which was sold to Montana-Dakota
Utilities in 2015. ALLETE Clean Energy in January 2017 announced a
plan to expand Thunder Spirit to about 150 megawatts through a PPA
with Montana-Dakota Utilities, which also has an option to purchase
the expansion.
“Wind prices are at historic lows and we’re taking advantage of
these low-cost projects to transition our energy fleet and secure
these prices for our customers,” said Chris Clark, president, Xcel
Energy-Minnesota, North Dakota, South Dakota. “Our customers count
on us to provide reliable and affordable energy and this investment
will do just that.”
ALLETE Chairman, President and CEO Alan R. Hodnik said ALLETE
Clean Energy is a credible nationwide supplier of renewable energy
that is attracting attention within the industry.
“ALLETE Clean Energy is demonstrating that it can build
shareholder value while answering the nation’s call to transform
the energy landscape,” Hodnik said. “ALLETE’s consolidated market
share of wind power capacity has grown to 16th in the U.S. and that
growth is poised to continue as the ACE safe harbor turbine
strategy has improved an already strong deal-flow pipeline and
connected ALLETE Clean Energy with new industry partners
nationwide.”
When Clean Energy 1 is complete, ALLETE Clean Energy will own
and operate about 640 megawatts of wind generation capacity in five
states while adding a long term PPA to its sales portfolio.
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 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 Energy in Center, North
Dakota; U.S. Water Services in St. Michael, Minnesota; and has an 8
percent equity interest in the American Transmission Co. More
information about ALLETE is available at www.allete.com.
ALE-ENRG
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.
View source
version on businesswire.com: http://www.businesswire.com/news/home/20170316005815/en/
ALLETEAmy Rutledge, 218-723-7400Manager - Corporate
Communicationsarutledge@allete.com
Allete (NYSE:ALE)
Historical Stock Chart
From Apr 2024 to May 2024
Allete (NYSE:ALE)
Historical Stock Chart
From May 2023 to May 2024