NextEra Energy Resources LLC, a business arm of utility major
NextEra Energy Inc.
), announced the completion of the acquisition of Cimarron I Wind
Energy Center from CPV Renewable Energy Company, a subsidiary of
Competitive Power Ventures Inc.
The Cimarron wind project will help in fulfilling NextEra
Energy's ambitious 1,500 Megawatt ("MW") U.S. Wind Energy Program
that it intends to bring into operation by the end of 2012. The
165 MW Cimarron I facility is situated in the Gray County
province of southwest Kansas, stretching for an area of 14,000
The renewable facility houses 72 Siemens 2.3 MW turbines which
help to extract maximum energy for low-to-moderate wind speeds.
The entire energy output will be sold to the Tennessee Valley
Authority as per a 20-year power purchase contract.
NextEra Energy is fast developing its wind generation business
and strengthening its foothold in the Kansas region. It presently
operates a 112 MW Gray County Wind Energy Center and a roughly 99
MW Ensign Wind Energy Center that came online in November
Together, the three projects will provide adequate power
services to more than 100,000 Kansas homes. Wind energy as a
source of electricity has gained considerable ground in the U.S.
commercial and residential markets. Given the current positive
vibe for sustainable green energy generation in the country, we
believe the Cimarron project will sit well with the company.
NextEra Energy's total wind portfolio is expected to hit the
10,000 MW mark with the execution of the large-scale renewable
However, unplanned outages and the popularity of natural gas,
a cheaper energy source, could moderate the growth of renewable
energy. NextEra Energy currently retains a short-term Zacks #3
Rank (Hold rating).
Another Zacks #3 Rank operator in the utility space,
) is also stepping up its renewable business. Its ancillary
Southern Power recently collaborated with Turner Renewable Energy
for the purchase of a solar installation plant in North
For NextEra, the Zacks Consensus Estimates for the fourth
quarter and full year 2012 presently stand at 97 cents and $4.51
per share, respectively. NextEra Energy along with its
subsidiaries engages in the generation, transmission,
distribution, and sale of electric energy in the United States
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