American Electric Power has closed financing on a 160MW wind farm, the first such deal in over two-and-a-half years. It promises to be the start of a series of such financings to hit the market in the next 12 months - before the US tax authorities look at renewing the renewable rules. It also confirms AEP in its strategy of selective raids on the non-recourse debt markets - the deal sold down in a terrible market.
Desert Sky's main claim to fame before this was as a former Enron Wind property - part of the suite of assets that the troubled energy trader divested during Chapter 11 proceedings. It was formerly called the Indian Mesa wind farm, and is located in Pecos County, in Texas. It covers an area of around 8000 acres, split between a number of large landowners, although the remote and barren landscape makes it ideal for wind production.
AEP Resources bought the wind farms on 31 December 2001, and kept the plants on balance sheet while it could arrange financing. Not all of Enron Wind's assets have been carved out, but GE acquired a substantial portfolio, and has assumed the warranties associated with these turbines. AEP now wants to...
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