OWNERSHIP CHANGING AT TELOCASET WIND FARM

A wind farm similar to this one at Kittitas County, Wash., will be built near Telocaset in Union County. When completed, the Elkhorn Valley Wind Power Project will use 61 turbines to generate 100 megawatts of power. Cost of the project is about $160 million. (Photo/HORIZON WIND ENERGY).

- Bill Rautenstrauch

- The Observer

In a major acquisition announced last week, the company building the Elkhorn Valley Wind Power Project near Telocaset in Union County is changing hands.

According to the announcement, Energias De Portugal has signed an agreement to acquire 100 percent of the share capital of Horizon Wind Energy, owned by The Goldman Sachs Group.

"We're really excited about our new owner," said Horizon's Hilary Foote. "Their values and culture seem to be very much in line with our own."

Construction of the Telocaset wind farm will proceed as planned, Foote said.

"We fully expect to pursue business as usual, with the added advantage of an owner with extensive experience in the international wind market," she said. "We'll keep moving forward, as planned."

The announcement said EDP is currently ranked seventh in the world for installed capacity, and will move into fourth place with the Horizon acquisition.

The European company said the acquisition is a "natural fit" with its strategy because it will enhance its renewable energy portfolio and provide entry in the U.S. market.

EDP had 1093 megawatts net installed capacity in 2006, in Portugal, Spain and France.

Development assets at the end of the year included 500 megawatts under construction, 1,900 megawatts in advance stage, and 1,200 megawatts under development. Sixty percent of the assets are in Spain, 21 percent in Portugal and 20 percents in other markets in France and Belgium.

Horizon has completed wind projects in New York, Washington, Oklahoma, Pennsylvania, Iowa and Costa Rica.

In addition to the Elkhorn Valley project, it is constructing facilities in Illinois, Texas and Minnesota. Other projects are under development in Washington, Illinois, Kansas, and New York.

EDP is buying the wile package, Foote said.

"It's all our projects, all our development assets," she said.

The sale is subject to customary closing conditions, including federal and state regulatory approvals and clearance. It is targeted to close by the end of the second quarter, 2007.

The Elkhorn Valley project, being built by Horizon subsidiary Telocaset Wind Power Partners, will use 61 turbines to generate 100 megawatts of power. Cost of the project is about $160 million, said Foote.

Recently, Horizon finalized power purchase and interconnection agreements with Idaho Power. In march, the Idaho Public Utilities Commission gave its final approval for the sale of electricity to Idaho Power.

In February, crews started construction of a staging area at the Telocaset site. Bad weather stalled completion of the staging area, but Foote said crews are back at work now.

Actual construction of the wind farm will begin this month and be complete around Thanksgiving, Foote said.

She said about 200 workers will be employed for construction, and between 10-15 will work on the site during operations.