PacifiCorp and Innergex Renewable Energy have signed a 320 MW power purchase agreement. The term of the contract is 30 years and covers the electricity produced by the Boswell Springs wind project. Innergex was awarded this contract after being a finalist in the PacifiCorp tender.
Innergex wins contract with PacifiCorp
The PPA between the two groups should provide Innergex with long-term revenues.
Michel Letellier, President and CEO of Innergex, highlights the qualities of this contract:
“The execution of the Boswell Springs PPA with PacifiCorp is an important milestone for the project and Innergex’s development efforts in the United States. The contract will provide Innergex with long-term revenue certainty with a high quality, well-capitalized utility.”
“Once built, Boswell Springs promises to help improve our distribution ratio and make a significant contribution to the decarbonization goals of the western states, where Innergex sees growing opportunities.”
Boswell Spring is expected to contribute approximately $39.2 million annually from production tax credits (PTCs). These are indexed to inflation.
The PPA between Innergex and PacifiCorp will become effective upon receipt of the final written order from the Wyoming Public Service Commission. This results in the issuance of a Certificate of Public Convenience and Necessity for Gateway South. Gateway South being PacifiCorp’s high voltage transmission line project.
About Boswell Springs
Boswell Springs was selected following a competitive bidding process issued by PacifiCorp. The project is expected to receive 100% of the U.S. Production Tax Credits (PTC). Indeed, in 2020, PacifiCorp issued a request for proposals to meet the region’s energy needs.
544 million will be needed to build Boswell Springs. However, the details of the smaller funding structure have not yet been defined. Cash flow is expected to be approximately US$22.6 million on an annual basis.
Finally, Boswell Springs, located in Wyoming, is still under development. The project is expected to begin commercial operations in the fourth quarter of 2024.