SCPPA in $533.1million deal to finance 399MW project

UNITED STATES: A California municipal agency plans to sell $533.1million of bonds this week to finance its power purchase from a wind farm in Washington state, according to reports.

Canon Power Groups Windy Flats project

The Southern California Public Power Authority (SCPPA) will use the sale to pay for power from Cannon Power Group’s Windy Point-Windy Flats project. The authority has an agreement to buy 262MW of the wind farm’s 399MW.

To help finance the project, SCPPA pre-paid for a 20-year block of power, and has an option to purchase the wind farm after five years.

The authority is buying the electricity on behalf of the Los Angeles Department of Water and Power and the city of Glendale, according to Bloomberg.

JPMorgan Chase will lead marketing of the debt, which Standard & Poor’s and Fitch Ratings have graded AA, the fourth-highest rating.

Cannon sold the project’s first 137MW phase for $385 million to the Tuolumne Wind Project Authority, a California agency formed by the Turlock Irrigation District and the Walnut Energy Center Authority.

Windy Point-Windy Flats was also the recipient of a $218.5 million federal grant, the largest award so far in the US Treasury’s grant program for renewables.

The developer plans to expand the project by an additional 100MW.