Milbank Closes 150 MW Shiloh Wind Project
PPM Energy Acquires enXco’s Wind Farm in Northern California
LOS ANGELES, CA, May 25, 2005 – PPM Energy, the U.S. competitive subsidiary of ScottishPower PLC, and enXco, an affiliate of EDF Energies Nouvelles of France, have announced that PPM has purchased enXco’s Shiloh Wind Project in northern California.
The international law firm Milbank, Tweed, Hadley & McCloy LLP represented enXco and EDF EN and was led by partner Ed Feo, with partner Mark Regante and associates Matt Meza, Karen Montoya and Leila Rouhi.
Edwin F. Feo, co-chair of Milbank’s Global Project Finance Group, noted, “This transaction reflects the growth of wind energy in California, and especially the expansion of the portfolio of PPM. On the seller’s side, this transaction was an opportunity to realize value on a project already in a late stage of development. Commercial operation is expected in late 2005. Going forward, we anticipate continued rapid growth in wind power projects due to strong customer demand, competitive energy pricing and a favorable regulatory climate.”
Milbank’s Feo is an authority in the developing area of renewable energy, including financings for geothermal and wind power projects. In addition to Shiloh, Feo has played a lead role in a number of transactions including, most recently, the $123 million Three Winds Holdings wind project in Wyoming and California (Awarded Euromoney’s Project Finance magazine’s “NORTH AMERICA RENEWABLES DEAL OF THE YEAR” for 2004); the $108.5 million Sweetwater II wind project in Texas; the $76 million Top Deer project financing; and the $66 million Kaeheawa Wind Power project in Hawaii.
About the Shiloh Wind Project
Under the terms of the agreement, PPM Energy will invest an estimated $235 million in the addition of 150 MW of capacity to the Shiloh wind farm in Solano County, California. PPM acquired the fully permitted Shiloh Wind Project from enXco, which began development on the project in 2002. The wind farm is expected to be commercially operational in 2005, subject to completion of certain transmission and related power agreements.
Shiloh is strategically located between major customer centers in San Francisco and Sacramento, and near the operating 162 MW High Winds Energy Center, from which PPM buys all the output for supply to wholesale customers. Currently under negotiation, the energy from the Shiloh project is expected to be sold under long-term agreements.
About enXco and PPM:
enXco, an affiliate of EDF Energies Nouvelles of France since 2002, develops, constructs, operates and manages wind energy projects throughout the United States. The company owns a total of 298 MW of wind-energy installations in the U.S. EnXco is also one of the largest O&M (operations & maintenance) providers for wind farms, currently servicing more than 4,000 turbines and more than 1,000 MW. EDF Energies Nouvelles is the renewable energy arm of EDF Group and is 50% owned by EDF (France). Primarily focused on wind energy, EDF Energies Nouvelles is also active in mini-hydro, solar and biomass, with leading positions in the European Union and the United States.
A leader in US wind power, PPM Energy currently controls approximately 830 MW of wind power in seven states PPM’s new wind projects under construction in 2005, including Shiloh, total 574 MW, which will raise PPM’s total capacity to 1,400 MW of wind energy. PPM is the U.S. energy subsidiary of ScottishPower PLC, an international energy company headquartered in Glasgow, UK. In addition to PPM, ScottishPower’s U.S. interests include the regulated utility company PacifiCorp.
In 2004 Milbank’s Global Project Finance Department closed $21 billion of deals worldwide, including 18 projects worth nearly $2 billion in the United States. Renowned for its leadership and experience, Milbank has pioneered some of the most innovative project financing techniques, and consistently ranks among the top law international law firms by industry trade publications. Most recently, Milbank received a record eight “DEAL OF THE YEAR” awards from Euromoney’s Project Finance magazine and received the “2005 CHAMBERS AWARD FOR USA PROJECTS” from UK legal publisher Chambers and Partners. With more than 100 dedicated project finance attorneys in the firm’s offices worldwide, Milbank provides legal advice under both U.S. and English law. As the project finance marketplace has evolved, Milbank’s Global Project Finance attorneys have expanded the range of products and services by working in conjunction with attorneys from other practice areas to encompass restructuring, mergers & acquisitions, development and finance and regulation.
Milbank, Tweed, Hadley & McCloy LLP is a premier global law firm headquartered in New York, with offices in Washington, DC, Los Angeles, Palo Alto, London, Frankfurt, Munich, Tokyo, Hong Kong and Singapore. Recently named “INTERNATIONAL LAW FIRM OF THE YEAR” by Legal Week, Milbank is a recognized leader in capital markets, corporate finance, project finance, acquisition finance, and other major fields of legal practice. The Firm's practice includes cross-border mergers and acquisitions and global securities transactions as well as assisting multinational clients with their cross border investments. Milbank provides a full range of services to many of the world’s leading financial, industrial and commercial enterprises, as well as governments, institutions and individuals.