December 12 (Renewables Now) - US diversified energy company Black Hills Corp (NYSE:BKH) said on Tuesday it has completed the acquisition of a 50% stake in the 29-MW Busch Ranch I wind farm in Colorado.
Black Hills Electric Generation LLC, a power generation subsidiary of Black Hills, purchased the stake for USD 16 million (EUR 14.1m) from a unit of Canadian energy infrastructure group AltaGas Ltd (TSE:ALA). The remaining 50% are held by Black Hills Colorado Electric, an affiliate utility doing business as Black Hills Energy. The latter is also operating the plant.
Located near Pueblo municipality in Huerfano county, the Busch Ranch I wind farm uses 16 turbines that have been generating power since 2012. Its output is being sold under a long-term power purchase agreement (PPA) with Colorado Electric that runs through October 2037.
"This purchase by our power generation business continues our strategy of owning and operating both utility and independent power generation facilities to serve our electric utility customers," said Linn Evans, president and CEO of Black Hills.
The Busch Ranch I wind park is currently being expanded with a 60-MW facility, the Busch Ranch II, planned to be switched on by end-2019. It will also operate under a PPA with Colorado Electric.
(USD 1.0 = EUR 0.883)