CALGARY, Feb. 2 /PRNewswire/ - Greengate Power Corporation ("Greengate") is pleased to announce that the California Public Utilities Commission has approved three 20-year power purchase agreements ("PPAs") for a total of 450 MW in new wind energy generation between Pacific Gas and Electric Company ("PG&E") and Greengate's wholly-owned subsidiaries Halkirk I Wind Project LP, Blackspring Ridge IA Wind Project LP and Blackspring Ridge IB Wind Project LP. The PPAs relate to the purchase and sale of renewable energy credits ("RECs") generated by Greengate's 150 MW Halkirk I Wind Project and 300 MW Blackspring Ridge I Wind Project, both located in Alberta, Canada.
This is the third largest wind energy transaction ever executed by a California utility. The PPAs will be used by PG&E for compliance under the California renewable portfolio standard.
Under the terms of the three PPAs, PG&E will purchase all the RECs associated with the expected 1,400 GWh per year of renewable energy generation by the two Greengate projects at fixed prices for 20 years. This is an essential component of the projects' economics and financing structure, and is in addition to the revenue that will be generated from the sale of power in Alberta's power market.
Upon completion in 2012, the Halkirk I Wind Project is expected to be Alberta's largest operating wind energy project with a total generating capacity of 150 MW. The Blackspring Ridge I Wind Project, with a total generating capacity of 300 MW, is expected to be Canada's largest operating wind energy project upon completion in 2013. Combined these two projects totaling 450 MW will increase Alberta's installed capacity of wind energy generation by more than 50% compared to the province's current 806 MW of installed capacity.
"Our world-class projects and team, including our advisors in California, made this transaction possible," said Dan Balaban, President and CEO of Greengate. "With these 450 MW of contracted projects, we look forward to substantially increasing Alberta's installed capacity of wind energy generation."
About Greengate Power Corporation
Greengate is a privately held renewable energy project developer based in Calgary, Alberta, Canada. It is focused on the development of high quality wind energy projects across Alberta with access to existing transmission and supported by long-term fixed-price agreements. Greengate is currently developing 1,550 MW of wind energy projects on approximately 200,000 acres of private land. Greengate's vision is to be Canada's largest pure-play renewable energy producer. For more information on Greengate, please visit www.greengatepower.com.
FORWARD LOOKING STATEMENTS:
This news release contains forward-looking statements and forward-looking information (collectively "forward looking information") within the meaning of applicable securities laws. In particular, forward looking information in this news release includes, but is not limited to: statements with respect to future investment commitments, the expected completion of projects and the timing thereof, expected generating capacity and expected revenues. The forward-looking information is based on certain key expectations and assumptions made by Greengate, including expectations and assumptions concerning the Halkirk I Wind Project and the Blackspring Ridge I Wind Project; the state of the economy and the cleantech business; business prospects and opportunities; the current regulatory and political environment; and existing financial commitments. Although Greengate believes that the expectations and assumptions on which the forward-looking statements are based are reasonable, undue reliance should not be placed on the forward-looking statements because Greengate can give no assurance that they will prove to be correct. Since forward-looking statements address future events and conditions, by their very nature they involve inherent risks and uncertainties. Actual results could differ materially from those currently anticipated due to a number of factors and risks, including but not limited to those described herein. The forward-looking statements contained in this news release are made as of the date hereof and Greengate undertakes no obligation to update publicly or revise any forward-looking statements or information, whether as a result of new information, future events or otherwise, unless required by applicable securities laws.
SOURCE Greengate Power Corporation