Monday, February 04, 2008

UPC Wind Obtains Tax Equity Financing for its 2008 New York Portfolio

BOSTON, Feb 04, 2008 (BUSINESS WIRE) -- LEH | news | PowerRating | PR Charts -- UPC Wind, an independent developer of wind power in the United States, today announced that it has secured tax equity financing from Lehman Brothers Holdings. Inc., for its 199 megawatt (MW) wind power project portfolio being constructed in upstate New York. This financing includes 58 Clipper 2.5 MW "Liberty" series wind turbine generators. The portfolio's three projects will deliver 199 MW of clean renewable energy to the Northeast.

"We're pleased to close the first-ever tax equity financing of Clipper turbines," said Tim Rosenzweig, UPC Wind's Chief Financial Officer. "This financing follows the successful turbine supply and construction loans for Clipper equipment we did with HSH Nordbank and Nord LB last year."

UPC Wind has installed eight of the 2.5 MW Clipper "Liberty" turbines at its 20 MW Steel Winds project in Lackawanna, N.Y. These were the first eight Clipper turbines produced at Clipper's Cedar Rapids facility. UPC Wind is currently installing another 50 such turbines at its 125 MW Cohocton and Dutch Hill wind farm projects in Cohocton, N.Y.

Also included in the portfolio financing is a 54 MW project under soon to be under construction in Prattsburgh, N.Y., that will utilize General Electric 1.5 MW SLE turbines.

In addition to increasing domestic energy production and increasing energy security, wind power is considered cost competitive with conventional sources of electricity, such as oil or gas. Unlike traditional sources of energy, wind has no fuel cost, therefore serving as a natural hedge against volatile fuel prices, which constitutes a significant portion of monthly electricity bills in most markets in the United States. Wind power also emits no greenhouse gases

UPC Wind is a leading independent wind power developer backed by affiliates of Madison Dearborn Partners and D.E. Shaw.

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