PacifiCorp has signed a 30-year power purchase agreement for the output of a wind farm under development in Wyoming.
Innergex is developing the 330 MW Boswell Springs Wind Project, which will connect to the PacifiCorp power grid at the Freezeout Substation in Carbon County, Wyoming via the Last Mile Transmission Project.
At 320 MW, the PacifiCorp PPA accounts for nearly all of the project’s expected output.
Construction of the Last Mile Transmission Project is expected to begin in January 2023 and works on the Boswell Springs Wind Project will be underway in June 2023 with commercial operation planned for Q4 2024 for an initial term of 30 years.
Total construction costs of the Boswell Springs wind project are expected to amount to $544 million of which US$41 million has already been invested.
Total financing including tax equity is expected to amount to approximately 90% of total costs, and the remaining sponsor equity not already invested will be financed from Innergex’s revolving credit facilities.
The financing and tax equity investment process is progressing well, the company said, and on-site construction activities will ramp up in Q2 2023.
Excluding any financing structure which has yet to be concluded, operating cash flows from the Boswell Springs Wind Project are expected to reach approximately $22.6 million on an annual basis. The project is expected to benefit from 100% of the Production Tax Credit which should contribute an annual approximative $39.2 million, which is indexed to inflation over a 10-year period.
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The PTC contribution does not take into account any additional potential bonus credits for domestic content or energy communities.
The procurement of GE Renewable Energy wind turbine generators has been secured, while the permitting process and selection of the EPC contractor have been completed.
The Boswell Springs project was selected in response to a competitive solicitation in PacifiCorp’s 2020 All-Source Request for Proposals, issued in July 2020.