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October 11, 2004
Eastern Wind, NB Power conclude 20-year wind power agreement
FREDERICTON, NB-Western Wind Energy's wholly-owned subsidiary, Eastern Wind Power (EWP), has executed a power purchase agreement with New Brunswick Power. The 20-year binding agreement formalizes terms reached in June (ELW June 28, 2004). It calls for EWP to produce and sell the available output of 20MW of wind power from its new wind farm, which it will own, operate and maintain near Dark Harbour, Grand Manan, New Brunswick. EWP was the successful proponent following a public request for proposal process initiated by New Brunswick Power. The project is expected to produce over $90 million (Cdn) in revenues over the 20-year term. The capital cost of the project is estimated at less than $30 million (Cdn). Further to the agreement, New Brunswick's Department of Environment and Local Government has granted EWP a Certificate of Determination to Proceed, as specified in the company's Environment Impact Assessment. Negotiations for project financing are under way with several large Canadian financial institutions, and final decisions are being made regarding equipment selection and other project details.