California Utility Signs Biggest U.S. Wind Contract

Southern California Edison has signed the largest wind power contract in U.S. history with Alta Windpower Development LLC, based in Australia.

The contract will double the amount of wind energy in So Cal’s portfolio, California’s second largest utility, bringing it to a total of 1,889 megawatts.

So Cal Ed, a divisioin of Edison International (EIX.N) has contracted for a mimimum of 1,500 megawatts of wind power to be generated in California’s Tehachapi region. Wind turbines will be spread across more than 50 square miles -making it three times the size of the largest wind farm in the U.S. to date.

Alta, which is a subsidiary of Allco Finance Group Ltd. (AFG.AX), will develop the project over the coming 5-10 years and will deliver power from the wind farms for 20 years.

Allco Infrastructure Ltd, another division of Allco, will own and operate the big wind farm.

So Cal, like other big utilities in California, signs long term power purchase agreements rather than building its own wind farms.

Allco is a financial services company – its division Allco Infrastructure Ltd. and Alta Innovative Power Co. are also developing wind projects in New Zealand and Australia.