NS: Watts Wind Energy and NSP strike deal
By Staff, Transcontinental Media

Source: The Daily Business Buzz, Feb. 23, 2010

[DARTMOUTH, NS] — Watts Wind Energy Inc., a joint venture between renewable energy operators Seaforth Engineering and Eon WindElectric, has signed a 20-year power purchase agreement with Nova Scotia Power Inc.

Watts plans to install a single 1.5 MW Vensys V77 wind turbine at Watt Section, NS. The company has measured wind data at the site since October 2008 and said it is looking forward to implementing the project this year.

Seaforth Energy Inc., headquartered in Dartmouth, has been contracted to manage Watts Wind Energy. Eon WindElectric, an Atlantic Canadian wind farm installation and servicing firm, will be providing wind consulting and project management services.

In addition to cash investment from the principals, the Watts project will also be financed with a mix of secured debt and equity capital. The current intent of Watts is to annually distribute most of its net profits to shareholders by way of dividends after paying all expenses and contributing to a capital reserve account, rather than reinvesting any profits into Watts Wind Energy which could be used for future wind development, to purchase more wind turbines or for other purposes.

Although the current intent is that Watts will own the entire wind project, it may choose to sell a portion of the project, partner or joint venture with another company to develop the project, spin off the project into a new entity which could be partially owned by Watts or otherwise take actions whereby it would only own a portion of the project.

Watts Wind Energy is being organized as a special purpose Community Economic Development Investment Fund (CEDIF), which is RRSP eligible and provides the potential for up to 65 per cent in tax benefits to eligible Nova Scotia investors, subject to various conditions.