ALLETE Clean Energy, a wholly-owned subsidiary of ALLETE, Inc. ALE, announced that it has closed the acquisition of a 100.5-megawatt (“MW”) Pennsylvania-based wind farm, Armenia Mountain, from The AES Corporation AES.
Closure of the acquisition followed a purchase agreement between the two companies signed on Apr 30, 2015. ALLETE Clean Energy exercised an option to purchase the wind facility from AES Corp. on Apr 1.
Through the deal, ALLETE Clean Energy purchased the wind facility, located near Troy, PA, along with a non-controlling interest from a minority shareholder for $108 million, in addition to the assumption of existing debt.
The wind facility has 67 General Electric Company GE turbines installed in 2009. Output from the facility is sold through existing power purchase agreements that expire through 2025.
The Armenia Mountain acquisition marks the seventh wind facility in ALLETE Clean Energy’s portfolio. It increased ALLETE’s total operating wind assets controlled by ALLETE Clean Energy and Minnesota Power (another unit of the company) to more than 1,000 MW.
In April this year, ALLETE Clean Energy also acquired a combined 97.5-MW wind generation facility, comprising the Chanarambie and Viking wind farms, from a unit of EDF Renewable Energy. The transaction was valued at $47.5 million. The two wind farms jointly have 65 turbines, manufactured by General Electric. (Read More: ALLETE (ALE) Unit Buys 97.5 MW Wind Farms in Minnesota)
These initiatives will enable ALLETE to meet stringent environmental regulations pertaining to carbon emissions during electricity generation.
Currently, ALLETE carries a Zacks Rank #3 (Hold). Enersis S.A. ENI sporting a Zacks Rank #1 (Strong Buy) is one of the better-ranked stocks in the industry at the moment.
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