WEC Energy Group (NYSE: WEC) today announced that the company has agreed to acquire an 85% ownership interest in Tatanka Ridge Wind Farm, under construction in Deuel County, South Dakota.
The project is being developed by Avangrid Renewables, LLC, a wholly-owned subsidiary of Avangrid, Inc. (NYSE: AGR). Commercial operation is expected to begin by early 2021. The project has long-term offtake agreements for 100% of the energy produced with a multinational investment grade company and a well-established electric cooperative that serves utilities in multiple states.
The Tatanka Ridge site will consist of 56 wind turbines with a combined capacity of 155 megawatts. WEC Energy Group's investment is expected to total $235 million for the 85% ownership interest and substantially all of the tax benefits.
"This is the latest in a series of investments that fit exceptionally well with our strategy of deploying capital in renewable energy assets that will serve strong, vibrant customers for years to come," said Gale Klappa, executive chairman.
The WEC Energy Group investment is expected to be eligible for 100% bonus depreciation. The transaction is subject to receiving all necessary regulatory approvals.
WEC Energy Group (NYSE: WEC), based in Milwaukee, is one of the nation's premier energy companies, serving 4.5 million customers in Wisconsin, Illinois, Michigan and Minnesota.
The company's principal utilities are We Energies, Wisconsin Public Service, Peoples Gas, North Shore Gas, Michigan Gas Utilities, Minnesota Energy Resources and Upper Michigan Energy Resources. Another major subsidiary, We Power, designs, builds and owns electric generating plants. In addition, WEC Infrastructure LLC owns a growing fleet of renewable generation facilities in the Midwest.
Source: WEC Energy Group
Date: Jul 28, 2020