Cannon Power Group Completes Phase I of Wind Project; Starts Phase II

March 31, 2009 – Vol.14 No.2

Cannon Power Group Completes Phase I of Windy Points/Windy Flats Wind Project; Starts Phase II.

Expected to be fully completed by 2010, Windy Point/Windy Flats, in Goldendale, Washington state, will be one of the largest wind projects in the U.S. in terms of size - 26 contiguous miles of ridgeline along the Columbia River – and generating 500 MW of wind power.

While Cannon Power Group has navigated its way through the financial challenges faced by the renewable energy industry over the past year, they are encouraged by the recently enacted federal renewable energy support programs and believe it holds potential to create improved stability in the renewable energy market.

“The financial support from HSH Nordbank for Phase I and II has been integral to the success of this project and others,” said Gary Hardke, president and managing director of Cannon Power Group. “But with additional support from the recently-enacted federal stimulus package, we anticipate being able to continue moving this project forward to create more jobs, help the local economy and provide clean power for over 250,000 households.”

Windy Point/Windy Flats will provide over 150 local jobs for the next two years including more than 20 direct jobs, 27 local subcontractors and an additional 23 local vendors, plus additional permanent administration, construction and operations jobs.

The hospitality sector is benefiting as well with the town’s three hotels at full capacity and restaurants busy from project specialists who have come from Utah, Wyoming, Florida, and Michigan.

The capital investment in Klickitat County from the Windy Point/Windy Flats project is over $700 million for Phases I and II. County tax revenues are expected to be approximately $2 million a year – based on the first 350 MW – and over $40 million for 20 years, the typical project life.

The yearly rent paid by the projects to local landowners is expected to be another approximate $2 million a year for the first 350 MW – over $40 million for 20 years – that also is injected directly into the local economy.

According to Mike Canon, Klickitat County’s economic development director, wind farms create an average of one permanent job for every five megawatts, mostly as technicians – with salaries ranging from $50,000 - $60,000 per year.

Phase I included over 20 miles of roads, nine miles of transmission lines, two project substations and foundations and installments of 62 turbines (42 Siemens 2.3 MW turbines and 20 REpower 2.0 MW turbines). Final project commissioning is expected next month. Phase II will add another 21 miles of roads, ten miles of transmission lines, an additional two project substations, along with 88 Siemens 2.3 MW turbines.

Cannon Power Group entered into an arrangement to make significant project layout changes to ensure none of its Windy Flats turbines could be viewed from the Columbia Scenic Gorge Area. Further, Cannon Power Group has committed to fund one of the largest habitat conservation programs in the Pacific Northwest. This program will provide over $1 million for the preservation of sensitive wildlife habitat.

California also will benefit from the Windy Point/Windy Flats project which could help the state meet its renewable energy goals since two California off-takers are expected to purchase over 330 MW from Phase I and Phase II - including the Turlock Irrigation District for 136.6 MW of power from Phase I and another California entity for Phase II – with additional commitments expected.

Cannon Power Group, of San Diego, California, has developed, constructed, operated, and maintained more than 30 utility-scale wind energy projects in the U.S., India, Switzerland, Spain, Italy, Turkey, Greece and Croatia. (3/30/09)

Links:

Cannon Power Group
http://www.cannonpowergroup.com

Disclaimer, Forward-Looking or Safe Harbor Statement on original press release: No