(ARLINGTON, OR) - - State regulators have signed off on the transfer of the Shepherds Flat Project site certificate from subsidiaries of Caithness Energy to Brookfield Renewable Partners (NYSE: BEP), a Canadian company.
Brookfield revealed the $700 million purchase price in an
earnings call last month.
At 845 megawatts, Shepherds Flat represents more than
one-fifth of Oregon’s wind power generating capacity. Power from the facility,
which straddles Gilliam and Morrow counties and opened in stages in 2012, is
sold under 20-year contracts to Southern California Edison.
Brookfield said the prospect of repowering the 9-year-old
facility — installing longer and lighter turbine blades — made it especially
attractive.
“This repowering opportunity is one of the largest in the
world and is expected to increase total generation by approximately 25%,” CEO
Connor Teskey said in the earnings call. “Having the expertise to undertake a
project of this size showcases our decades of experience in driving operational
efficiencies, while generating attractive returns.”
Caithness got permission from state regulators more than a
year ago for the repowering.
The sale to Brookfield still needs federal approval. In a
Federal Energy Regulatory Commission filing, Brookfield said it was hoping for
an order approving the transfer by March 9 “so as to facilitate timely
consummation of the transaction.”
Shepherds Flat had a construction cost of some $1.9 billion,
but Caithness took advantage of Great Recession-era federal and state subsidies
totaling more than $1.2 billion to dramatically reduce the cost.
