NJR Clean Energy Ventures (NJRCEV), the unregulated clean energy subsidiary of New Jersey Resources (NYSE:NJR), is pleased to announce the completion of the Two Dot Wind Farm, its first onshore wind project. Located on 176 acres in Two Dot, Montana, the wind farm consists of six, GE 1.62 megawatt, 87-meter rotor diameter wind turbines with a capacity of 9.7 megawatts. NJRCEV invested approximately $22 million to develop the project and will own and operate the wind farm.
The energy produced at the Two Dot Wind Farm, as well as the renewable attributes, will be sold through a 25-year power purchase agreement (PPA) with NorthWestern Energy, a natural gas and electricity investor-owned utility that serves over 678,200 customers in Montana, South Dakota and Nebraska. Additionally, NJRCEV expects the wind farm will qualify for federal production tax credits (PTC), which are based on kilowatt-hour output. All PTCs generated by the Two Dot Wind Farm will be utilized by NJR.
'Today (June 26) represents a significant milestone for our company -- the completion of our first onshore wind project,' said Laurence M. Downes, chairman and CEO of New Jersey Resources. 'Two Dot further demonstrates NJR Clean Energy Ventures' diversification of its investment portfolio. In addition to producing enough clean energy to power 3,000 homes annually, it also represents a long-term growth opportunity for our company and shareowners.'
NJRCEV invests in, owns and operates clean energy projects that generate clean power and provide low-carbon energy solutions. These solutions benefit its customers, while providing growth opportunity for shareholders. NJRCEV's approach has primarily focused on commercial and residential solar project development in New Jersey. As a part of its clean energy strategy, NJRCEV is effectively diversifying its holdings to include small to mid-sized onshore wind projects, supported by long-term PPAs, as well as other energy investments such as combined heat and power projects.
This news release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. NJR cautions readers that the assumptions forming the basis for forward-looking statements include many factors that are beyond NJR's ability to control or estimate precisely, such as estimates of future market conditions and the behavior of other market participants. Words such as 'anticipates,' 'estimates,' 'expects,' 'projects,' 'intends,' 'plans,' 'believes,' 'may,' 'should' and similar expressions may identify forward-looking information and such forward-looking statements are made based upon management's current expectations and beliefs as of this date concerning future developments and their potential effect upon NJR. There can be no assurance that future developments will be in accordance with management's expectations or that the effect of future developments on NJR will be those anticipated by management. Forward-looking information in this filing includes, but is not limited to, certain statements regarding NJRCEV's investment in the Two Dot Wind Farm, including NJRCEV's qualification for PTCs related to Two Dot Wind Farm, and the diversification of NJR's clean energy portfolio.
Factors that could cause actual results to differ materially from the company's expectations include, but are not limited to, weather and economic conditions; the ability to obtain governmental approvals and/or financing for the construction, development and operation of certain non-regulated energy investments; risks associated with our investments in clean energy projects and our investment in an onshore wind developer, including the availability of regulatory and tax incentives, logistical risks and potential delays related to construction, permitting, regulatory approvals and electric grid interconnection, the availability of viable projects, NJR's eligibility for ITCs and PTCs, the future market for Solar Renewable Energy Certificates (SRECs) and operational risks related to projects in service; timing of qualifying for ITCs due to delays or failures to complete planned solar energy projects and the resulting effect on our effective tax rate and earnings; NJR does not, by including this paragraph, assume any obligation to review or revise any particular forward-looking statement referenced herein in light of future events. More detailed information about these factors is set forth under the heading 'Risk Factors' in NJR's filings with the Securities and Exchange Commission (SEC) including its most recent Form 10-K and the Form 10-Q for the quarter ended March 31, 2013, filed on May 3, 2013.
About New Jersey Resources
New Jersey Resources (NYSE:NJR) is a Fortune 1000 company that provides safe and reliable natural gas and renewable energy services, including transportation, distribution and asset management. With annual revenues in excess of $3 billion, NJR is comprised of five key businesses:
- New Jersey Natural Gas, NJR's principal subsidiary, operates and maintains over 7,000 miles of natural gas transportation and distribution infrastructure to serve approximately half a million customers in New Jersey's Monmouth, Ocean and parts of Morris, Middlesex and Burlington counties.
- NJR Clean Energy Ventures is a clean energy company that invests in, owns and operates solar and onshore wind projects with a total capacity in excess of 75 megawatts, providing residential and commercial customers with low carbon solutions.
- NJR Energy Services, NJR's wholesale energy services business, manages a diversified portfolio of natural gas transportation and storage assets and provides customized energy solutions to its customers across North America.
- NJR Midstream invests and maintains an equity ownership in a natural gas storage facility and a transportation pipeline, and serves companies from local distributors and producers to electric generators and wholesale marketers.
- NJR Home Services is a provider of heating, central air conditioning, standby generators, solar and other indoor and outdoor comfort products to nearly 120,000 residential homes and businesses throughout New Jersey.
NJR and its more than 900 employees are committed to helping customers save energy and money by promoting conservation and encouraging efficiency through Conserve to Preserve® and initiatives such as The SAVEGREEN Project® and The Sunlight Advantage®.