Atlantic Power Corp. Adds More Wind Energy

Boston-based Atlantic Power Corporation (NYSE: AT) has acquired a 51% stake in a wind power project in Oklahoma.

Under the terms of the agreement, Atlantic Power agreed to pay $23 million in development capital to Canadian Hills Wind, LLC which owns the Canadian Hills Project. The $460 million, 300 MW wind energy development will be located just west of Oklahoma City. Apex Wind Energy Holdings, the project's developer, expects to break ground on construction in April 2012 and plans to be complete in November 2012.

The acquisition comes just a week after Southwestern Electric Power Company (SWEPCO) and the Oklahoma Municipal Power Authority (OMPA) signed separate power purchase agreements (PPAs) to buy electricity generated from the Canadian Hills facility. SWEPCO will receive up to 201 MW while OMPA has agreed to buy up to 49.2 MW. A buyer for the remaining 48 MW is still being pursued.

With this acquisition Atlantic Power nearly doubles its wind energy portfolio. In addition, its 51% interest in Canadian Hills, the company owns a 27% stake in the 183 MW Idaho Wind Partners 1 facility located near Twin Falls, Idaho which was brought online early last year.

Atlantic Power investment in wind energy generation is quite small relative to its entire generation fleet. The majority of the company's 2,140 MW generation capacity, is produced by natural gas. In fact, of the 32 power plants (one of which is under construction), which span 11 states and two provinces, that Atlantic Power owns stakes in, 21 are fuelled by natural gas.

Investors responded well to the news of the addition of more wind energy generation and Atlantic Power's stocks closed up just over 1%.

Image Credit: Marcy Reiford via Flickr