VANCOUVER, Dec. 27, 2017 /PRNewswire/ - Alterra Power Corp. and Inovateus Solar LLC are pleased to announce that the 11 MW Spartan solar project commenced full commercial operations on December 21, 2017. The Spartan project is located above 45 acres of carports at the Michigan State University campus in East Lansing, Michigan, covering over 4,500 parking spaces.
Separately, the project's $19.8 million construction loan was retired on December 22 via a $10.2 million 10-year term loan and a $9.7 million tax equity investment, both provided by 1st Source Bank, a subsidiary of 1st Source Corporation (NASDAQ : SRCE ). Under an agreement with Inovateus, Alterra now holds a 100% sponsor equity interest in the project.
Alterra will manage the project, which sells 100% of its power under a 25-year agreement with the Board of Trustees of Michigan State University. Inovateus managed the construction of the project and will also provide operation and maintenance services under a long-term contract.
Jon Schintler, VP of Project Finance & Development at Alterra, said, "We're pleased to complete this project within 2017 – with tremendous thanks to our partners at Michigan State University, 1st Source and Inovateus. We're looking forward to further growth of our US solar business and many successful years delivering clean power to MSU."
"We're excited to reach commercial operations at this project, a culmination of hard work by our entire team and each of our partners," said TJ Kanczuzewski, President of Inovateus.
About Alterra Power Corp.
Alterra Power Corp. is a global renewable energy company that manages operations of nine power plants totalling 836 MW of hydro, wind, geothermal and solar generation capacity in Canada, the USA and Iceland. Alterra owns a 375 MW share of this capacity, generating over 1,500 GWh of clean power annually.
Alterra is also constructing the 200 MW Flat Top wind project in central Texas, which is expected to be in operation in the first half of 2018 (51% owned by Alterra). Upon the completion of Flat Top, Alterra will operate ten power plants totalling 1,036 MW of capacity and will own a 476 MW share of this capacity, generating almost 2,000 GWh of clean power annually. Alterra also has an extensive portfolio of development projects and a skilled team of developers, builders and operators to support its growth plans.
Alterra trades on the Toronto Stock Exchange under the symbol AXY.
Cautionary Note regarding Forward-Looking Statements and Information
This press release contains statements that are "forward-looking information" within the meaning of Canadian securities legislation including, but not limited to, the future success of the Spartan project's operations, growth of our U.S. solar business, expected timing for completion of Flat Top, and estimates of annual generation.
Forward-looking statements are based on certain key expectations and assumptions made by Alterra, including expectations and assumptions concerning: economic and financial conditions (including tax regulation); project performance; and success and timely completion of construction efforts at the Flat Top project. Although Alterra believes that the expectations and assumptions on which such forward-looking statements are based are reasonable, undue reliance should not be placed on the forward-looking statements because Alterra can give no assurance that they will prove to be correct.
Since forward-looking statements address future events and conditions, they are by their very nature subject to inherent risks and uncertainties. Actual results could differ materially from those currently anticipated due to a number of factors and risks. These include, but are not limited to, the risks associated with the renewable energy industry in general; ability to construct Flat Top on time and within budget; current economic and financial condition (including changes thereto); hydro, wind, geothermal and solar resource regime; construction, design and development of new facilities; performance of existing projects; equipment failure; interest rate and refinancing risk; risks associated with recently announced changes to the U.S. federal tax regime; financial leverage and restrictive covenants; and relationships with public entities.
Alterra is relying on certain assumptions that it believes are reasonable at this time, but each of which is subject to change for any number of reasons. Accordingly, readers should not place undue reliance on the forward-looking statements contained in this press release. Readers are cautioned that the foregoing list of factors is not exhaustive. Additional information on these and other factors that could affect the operations or financial results of Alterra are included in Alterra's annual information form and most recently filed quarterly report, each of which is filed with applicable Canadian securities regulators and may be accessed through the SEDAR website (www.sedar.com).
The forward-looking statements contained in this press release are made as of the date hereof and Alterra undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, unless so required by applicable securities laws.
SOURCE Alterra Power Corp.