Horizon Lines Up GE Tax Equity

11-13-2009 | Source: Power Finance & Risk

Horizon Wind Energy is expecting to secure tax equity investments from General Electric Energy Financial Services for two wind projects, according to documents filed with the U.S. Federal Energy Regulatory Commission last week.

GE EFS will take 100% of the Class B stock in its 99 MW Blue Canyon V wind project, and up to a 22% tax equity investment in Horizon’s 103 MW Arlington wind project in Gilliam County, Ore. GE EFS plans to provide additional debt financing to Horizon for Blue Canyon, according to the documents. Andy Katell, spokesman for GE EFS in Stamford, Conn., declined to comment on the investment details. Both deals are expected to close by month’s end.

Blue Canyon V and Arlington will roughly cost $247.5 million and $257.5 million, respectively, based on a $2 million per MW wind development costs.

Officials at Horizon did not return calls.

GE EFS also gave Blue Canyon some limited debt financing for the project near Slick Hills, Okla., according to the filings. The size of the investment could not be immediately learned.

Horizon Wind Energy, a subsidiary of EDP Renováveis, was seeking tax equity for five of its wind projects in order to complete its cash grant applications to the U.S. Department of Energy and will tap debt from its parent company as well (PFR, 9/4).