Emera Makes Turbine Offer

From the Chronicle Herald

Emera makes turbine offer
Firm wants 50 per cent of wind park
By JUDY MYRDEN Business Reporter
Fri. Nov 20 - 4:46 AM
Nova Scotia Power’s parent company has made an offer to buy a stake in a proposed 20-turbine wind farm in Digby Neck.

Emera Inc. of Halifax has made an undisclosed offer to buy the 50 per cent interest held by Scotian Windfields’ partner SkyPower Corp., which entered into creditor protection when owner Lehman Brothers went bankrupt.

"This presents an opportunity for us as a company to possibly move a project forward and we think it’s a viable project and we would like to see that happen," Emera spokeswoman Sasha Irving said Thursday.

Documents filed with the Ontario Superior Court of Justice shows a numbered company owned by Emera put the offer in to buy the assets in November and the deal is expected to be finalized Nov. 30.

Earlier this year, Nova Scotia Power purchased the Nuttby Mountain wind farm project in Colchester County from EarthFirst Inc. of Calgary. The project had stalled due to the global credit crisis and NSP’s proposal to develop it is currently before government regulators for approval.

The utility, which is a regula-ted monopoly, is asking the Nova Scotia Utility and Review Board to approve the $120-million wind project by Dec. 1.

Ms. Irving said it was easier for Emera to make the purchase than Nova Scotia Power, which would require regulatory approval.

"Emera has more flexibility to move quickly in this type of situation . . . (and) we made the decision that we thought it was best that Emera move forward with this one," she said.

Development costs on the Digby wind project were approximately $19.1 million at the time of SkyPower’s filing for creditor protection in August.

The company had also made purchase deposit payments of approximately US$16.2 million to General Electric for the 20 wind turbines.

The total commitment under the GE contract was approximately US$41.1 million, according to court documents.

Barry Zwicker, president and CEO of Scotian Windfields, said the project can now move forward and expects construction to begin in January and have the turbines generating electricity by November 2010.

"We’ve got a partner that is a solid company, and I don’t think there is any fear of Emera going into any creditor protection or bankruptcy process. From our perspective we’re looking forward to working with them and getting the project complete," said Mr. Zwicker Thursday.

The 30-megawatt development has a purchase power agreement, signed in May 2008, with Nova Scotia Power. Thirty megawatts of electricity can power 10,000 homes.

The Digby wind park is key for the utility to meet the government’s renewable energy target of generating 25 per cent of electricity from green sources by 2015.