Edison Mission Group, a subsidiary of
), in collaboration with Nebraska Public Power District ("NPPD")
has begun the construction work on a new project known as The
Crofton Bluffs project.
The Crofton Bluffs project is located in Knox County in
northeast Nebraska which is approximately 15 miles south of the
South Dakota border. Crofton Bluffs will comprise 22 wind turbines
and have a generating capacity of 42 megawatts (
) of electricity. Under a 20-year power purchase agreement, the
power generated will be sold to NPPD and will be able to meet the
energy needs of 14,000 homes in Nebraska.
The company expects this project to be completed by the end of
2012. The wind farm is estimated to contribute about $2.8 million
to the state in sales tax revenues. Over the next 25 years, the
project is expected to provide about $16 million in property and
state tax revenues and lease payments to local landowners. Besides
yielding profit, the project will help the company to achieve its
goal of generating 10% of its energy from renewable resources.
As Nebraska provides plentiful wind resources and an economic
and friendly environment that supports clean energy investment,
Edison International has been continuously inking contracts with
the state. This is Edison's fourth wind energy project in Nebraska.
The other three projects are Elkhorn Ridge project, the Laredo
Ridge wind farm project near Petersburg in Boone County and the
Broken Bow wind project in Custer County that is under
The drive toward renewables is evident among most power
) is close to complying with California's stringent Renewable
Portfolio Standard program. The rules call for procuring 33% of
power from renewable resources by 2020.
Recently, a Sempra subsidiary entered into a new power purchase
agreement to buy 15 MW of solar energy from Silverado Power
subsidiaries, Western Antelope Dry Ranch LLC in Lancaster,
California, and Victor Mesa Linda B LLC in Victorville,
Coming back to Edison, the company presents a lower risk profile
compared to its utility-only peers due to its strong portfolio of
regulated utility assets and well-managed merchant energy
operations. Going forward, key growth drivers are California's
supportive regulatory environment, ongoing alternative energy
projects and steep growth in the rate base.
However, several factors continue to weigh on Edison
International, including a tepid economy, volatile gas prices,
imminent expiry of its cheap rail transport contract and the
recovery of capital expansion costs. The company presently retains
a short-term Zacks #3 Rank (Hold) that corresponds with our
long-term Neutral recommendation on the stock.
California-based Edison International is a utility holding
company operating through its principal subsidiaries: Southern
California Edison Company, Edison Mission Energy, and Edison
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