AKRON, Ohio, Feb. 8, 2011 /PRNewswire/ -- FirstEnergy Corp. (NYSE: FE) today announced that its FirstEnergy Solutions subsidiary will purchase 100 megawatts (MW) of output from the 304-MW Blue Creek Wind Farm, which is being built in western Ohio by Iberdrola Renewables, the world's leading provider of wind power. The Blue Creek Wind Farm is the first large-scale wind operation in Ohio to begin construction.
Under terms of an agreement the companies recently reached, FirstEnergy Solutions will purchase 100 MWs of the total output of the project for 20 years beginning in October of 2012.
"Blue Creek Wind Farm represents our first wind power agreement in Ohio and will help us meet the renewable energy standards that have been established for the state," said Gary R. Leidich, executive vice president and president, FirstEnergy Generation. "Overall, FirstEnergy Solutions continues to play a key role in the development of renewable energy in the region with 476 MWs of wind power under long-term contracts and 451 MW of pumped-storage hydro-power facilities."
"We are very pleased to partner with FirstEnergy Solutions on a second power purchase agreement and look forward to supplying them with clean, homegrown power," said Martin Mugica, executive vice president of Iberdrola Renewables. "By building the Blue Creek Wind Farm, we are expanding our business into a new state and delivering immediate and long-term benefits to Van Wert and Paulding Counties, as well as the rest of Ohio."
Construction for Blue Creek Wind Farm, located in Tully, Union and Hoaglin townships in Van Wert County, and Benton, Blue Creek and Latty townships in Paulding County, began in September. Iberdrola Renewables expects construction to be completed within the year. The Blue Creek Wind Farm also brings approximately $1.1 million in annual lease payments to local landowners, $2.7 million in annual local taxes, 15 to 20 new permanent jobs, over 300 construction jobs, and local purchase of some supplies and construction materials. Currently, 18 Ohio companies are supporting or supplying the construction effort. Ultimately, the project will include 152 Pennsylvania-built wind turbines rated at 2 MW each.
Iberdrola Renewables, Inc. is headquartered in Portland, Ore., with more than 850 employees at the end of 2010. It is part of the Iberdrola Renovables global group, the world's leading provider of wind power with more than 12,000 megawatts of renewable energy in operation around the world, and more than 4,600 megawatts of that wind power located in the U.S. www.iberdrolarenewables.us.
FirstEnergy is a diversified energy company headquartered in Akron, Ohio. Its subsidiaries and affiliates are involved in the generation, transmission and distribution of electricity, as well as energy management and other energy-related services. Its seven electric utility operating companies comprise the nation's fifth largest investor-owned electric system, based on 4.5 million customers served, within a 36,100-square-mile area of Ohio, Pennsylvania and New Jersey; and its generation subsidiaries control approximately 13,500 megawatts of capacity.
Forward-Looking Statements: This news release includes forward-looking statements based on information currently available to management. Such statements are subject to certain risks and uncertainties. These statements include declarations regarding management's intents, beliefs and current expectations. These statements typically contain, but are not limited to, the terms "anticipate," "potential," "expect," "believe," "estimate" and similar words. Forward-looking statements involve estimates, assumptions, known and unknown risks, uncertainties and other factors that may cause actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. Actual results may differ materially due to the speed and nature of increased competition in the electric utility industry, the impact of the regulatory process on the pending matters in Ohio, Pennsylvania and New Jersey, business and regulatory impacts from American Transmission Systems, Incorporated's realignment into PJM Interconnection, L.L.C., economic or weather conditions affecting future sales and margins, changes in markets for energy services, changing energy and commodity market prices and availability, financial derivative reforms that could increase our liquidity needs and collateral costs, replacement power costs being higher than anticipated or inadequately hedged, the continued ability of FirstEnergy's regulated utilities to collect transition and other charges or to recover increased transmission costs, operating and maintenance costs being higher than anticipated, other legislative and regulatory changes, revised environmental requirements, including possible greenhouse gas emission and coal combustion regulations, the potential impacts of the U.S. Court of Appeals' July 11, 2008 decision requiring revisions to the Clean Air Interstate Rules and the scope of any laws, rules or regulations that may ultimately take their place, the uncertainty of the timing and amounts of the capital expenditures needed to, among other things, implement the Air Quality Compliance Plan (including that such amounts could be higher than anticipated or that certain generating units may need to be shut down) or levels of emission reductions related to the Consent Decree resolving the New Source Review litigation or other similar potential regulatory initiatives or actions, adverse regulatory or legal decisions and outcomes (including, but not limited to, the revocation of necessary licenses or operating permits and oversight) by the Nuclear Regulatory Commission, any impact resulting from the receipt by Signal Peak of the Department of Labor's notice of a potential pattern of violations at Bull Mountain Mine No. 1, Metropolitan Edison Company's and Pennsylvania Electric Company's transmission service charge filings with the Pennsylvania Public Utility Commission, the continuing availability of generating units and their ability to operate at or near full capacity, the ability to comply with applicable state and federal reliability standards and energy efficiency mandates, the ability to accomplish or realize anticipated benefits from strategic goals (including employee workforce initiatives), the ability to improve electric commodity margins and to experience growth in the distribution business, the changing market conditions that could affect the value of assets held in FirstEnergy's nuclear decommissioning trusts, pension trusts and other trust funds, and cause it to make additional contributions sooner, or in an amount that is larger than currently anticipated, the ability to access the public securities and other capital and credit markets in accordance with FirstEnergy's financing plan and the cost of such capital, changes in general economic conditions affecting the company, the state of the capital and credit markets affecting the company, interest rates and any actions taken by credit rating agencies that could negatively affect FirstEnergy's access to financing or its costs or increase its requirements to post additional collateral to support outstanding commodity positions, letters of credit and other financial guarantees, the continuing uncertainty of the national and regional economy and its impact on the company's major industrial and commercial customers, issues concerning the soundness of financial institutions and counterparties with which FirstEnergy does business, the expected timing and likelihood of completion of the proposed merger with Allegheny Energy, Inc., including the timing, receipt and terms and conditions of any required governmental and regulatory approvals of the proposed merger that could reduce anticipated benefits or cause the parties to abandon the merger, the diversion of management's time and attention from our ongoing business during this time period, the ability to maintain relationships with customers, employees or suppliers as well as the ability to successfully integrate the businesses and realize cost savings and any other synergies and the risk that the credit ratings of the combined company or its subsidiaries may be different from what the companies expect and the risks and other factors discussed from time to time in its Securities and Exchange Commission filings, and other similar factors. The foregoing review of factors should not be construed as exhaustive. New factors emerge from time to time, and it is not possible for management to predict all such factors, nor assess the impact of any such factor on FirstEnergy's business or the extent to which any factor, or combination of factors, may cause results to differ materially from those contained in any forward-looking statements. FirstEnergy expressly disclaims any current intention to update any forward-looking statements contained herein as a result of new information, future events, or otherwise.
SOURCE FirstEnergy Corp.