Pinnacle West Capital subsidiary Bright Canyon Energy has acquired ownership stakes in two wind farms developed by independent energy company Tenaska.
The two projects are currently under construction and are expected to be fully operational this year.
According to the agreement, Bright Canyon acquired indirect minority stakes in both Tenaska Clear Creek Wind, which owns Tenaska Clear Creek Energy Center in Missouri, and Nobles 2 Power Partners, owner of the Nobles 2 wind farm in Minnesota.
Tenaska finance senior vice-president Dave Kirkwood said: “We have found a strong partner for these valuable wind assets in Bright Canyon.
“These projects are well-positioned having long-term power purchase agreements, and we are pleased to have Bright Canyon on board as we approach completion of construction.”
Bright Canyon indirectly owns a 9.9% stake in Tenaska Clear Creek Wind and a 5.1% interest in Nobles 2 Power Partners.
Located in Nodaway County in northwest Missouri, Tenaska Clear Creek is a 242MW wind farm. The facility is expected to begin commercial operations in the first quarter of this year.
Once completed, the energy produced by the wind farm will be supplied to Associated Electric, an electric generation and transmission cooperative based in Springfield, Missouri.
The 250MW Nobles 2 wind farm is expected to enter the operational phase later this year.
The clean energy generated by the wind farm will be supplied to ALLETE’s utility division Minnesota Power under a 20-year power purchase agreement.
Pinnacle West executive vice-president and chief financial officer Jim Hatfield said: “We are very pleased to invest in two high-quality wind farms that will serve customers in the Midwest with clean energy and to do so with a first-class partner in Tenaska.
“These projects also provide an opportunity to gain experience in the construction, ownership and operation of large-scale wind operations and support our strategy focused on a clean energy future.”
The companies have not disclosed the financial details of the transaction.