PacifiCorp purchases Leaning Juniper 1 wind project
PPM builds first wind farm for utility ownership
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July 27, 2006
PORTLAND, Ore. - PacifiCorp and PPM Energy today announced PacifiCorp has purchased from PPM Energy the Leaning Juniper 1 wind energy generation facility, located about three miles southwest of Arlington, Ore. When completed in August 2006, the Leaning Juniper 1 facility will have a generating capability of 100.5 megawatts, which will become part of the diverse resource mix used to supply electricity to PacifiCorp's 1.6 million customers in six Western states.
PPM Energy began project construction in January 2006. Under the agreement, PPM Energy will complete construction of the project for PacifiCorp and then provide operation, maintenance and warranty services for a period of two years.
Oregon Governor Ted Kulongoski said of the announcement, "My goal is to make Oregon a national leader in the production and use of renewable energy, and this project will help us achieve that goal. It also demonstrates that Oregon-based wind power is cost-effective and a good fit for utility energy portfolios. Congratulations to both PacifiCorp and PPM Energy."
"This purchase announcement is the first of several we expect to be making in the next year, as we aggressively pursue renewable resources as an economic and environmentally prudent component of our generation portfolio," said Greg Abel, chairman and chief executive officer of PacifiCorp. "As part of its sale to MidAmerican Energy Holdings Company, PacifiCorp committed to bring at least 100 megawatts of cost-effective new wind resources in service by late March 2007 and to have, to the extent available, 400 megawatts of cost-effective new renewable resources in PacifiCorp's generation portfolio by the end of 2007."
Today's announcement comes within four months of the closure of the sale of PacifiCorp to MidAmerican and fulfills the first step of that commitment.
"We are very pleased to see PacifiCorp increase the amount of clean, renewable energy it uses to serve its customers, and impressed with how quickly the company is following through on its acquisition commitments," said Rachel Shimshak, director of the Renewable Northwest Project, a regional renewable advocacy group that requested renewable resource commitments as part of the approval process for the PacifiCorp sale to MidAmerican Energy Holdings Company.
Today's announcement is a first for PPM Energy, which for some time has sold energy and green tags from wind farms and now, for the first time, is selling a developed and built wind project to a utility. PPM Energy is the leading wind developer in the Northwest.
"PPM Energy is proud to bring two new products to its customers - a completed new wind plant and long-term operations and maintenance services," said Terry Hudgens, chief executive officer, PPM Energy. "These flexible new structures allow PPM Energy to continue to provide a wider range of solutions to meet our customers' growing demand for clean, renewable wind energy."
The project will generate enough energy to serve more than 30,000 homes each month. It will use 1.5-megawatt General Electric turbines, 67 in total and all of which are erected. The land is owned by Waste Management Disposal Services of Oregon, Inc. and will continue to be used for wheat farming and grazing.
PacifiCorp is one of the lowest-cost electricity producers in the United States, providing more than 1.6 million customers with reliable, efficient energy. The company works to meet growing energy demand while protecting and enhancing the environment. PacifiCorp's generating plants have a net capability of almost 8,500 megawatts from coal, hydro, gas-fired combustion turbines and renewable wind and geothermal power. PacifiCorp operates as Pacific Power in Oregon, Washington and California, and as Rocky Mountain Power in Utah, Wyoming and Idaho.
About PPM Energy
PPM Energy now has more than 1,700 megawatts of wind energy in operation or under construction. The strength of its renewable project pipeline has allowed the company to increase its 2010 target by more than 50 percent to at least 3,500 megawatts developed or controlled by PPM Energy. PPM Energy balances its supply portfolio with sales to wholesale customers, placing almost all of its output in long-term contracts. Major customers include the cities of Seattle, Sacramento, Eugene, Pasadena, and Anaheim as well as investor-owned utilities such as Xcel Energy and Pacific Gas & Electric Company and the federal Bonneville Power Administration.