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BP and Sempra U.S. Gas & Power Announce Plans to Further Expand Strategic Relationship in Wind Business

BP Wind Energy and Sempra U.S. Gas & Power today announced plans to further expand their strategic relationship by jointly developing the Mehoopany Wind Farm in Pennsylvania and the Flat Ridge 2 Wind Farm in Kansas that represent a combined investment of more than $1 billion.  Both wind farms are fully-contracted under long-term agreements, and are expected to be in commercial operation by year-end 2012.  The wind farms will have a combined total output of 560 megawatts (MW) and will each be the largest ever built in their respective states.

The Mehoopany Wind Farm will be located in Wyoming County, Pennsylvania and is expected to generate up to 141 MW of energy.  The power output from the wind farm has been sold under contract to Old Dominion Electric Cooperative and Southern Maryland Electric Cooperative Inc.  The contracts were negotiated by the National Renewables Cooperative Organization.

Construction of the Mehoopany Wind Farm site began in November 2011.  The wind farm will utilize 88 GE 1.6 MW wind turbines and will employ some 250 workers during peak construction.  The construction contract has been awarded to Renewable Energy Systems Americas Inc. (RES Americas).

The Flat Ridge 2 Wind farm will be located on a 66,000-acre site approximately 40 miles southwest of Wichita, Kansas.  The wind farm will utilize 262 GE wind turbines each with a rated capacity of 1.6 MW to generate 419 MW of renewable power.  The power output from the Flat Ridge 2 Wind Farm has been sold under contracts to Associated Electric Cooperative, Inc. and Southwestern Electric Power Company, a unit of American Electric Power.  A third contract has been secured but has yet to be announced.

The construction contract for the Flat Ridge 2 Wind Farm has been awarded to Blattner Energy and is expected to employ approximately 500 people on-site during the peak of construction.

“Today’s announcement reinforces BP’s commitment to produce essential sources of energy and provide cost-competitive power to our customers,” said John Graham, president and CEO, BP Wind Energy.  “Our strategic relationship with Sempra U.S. Gas & Power also continues to grow as a result of our aligned thinking and professional approach to energy generation.  As new members of the community where the Mehoopany and Flat Ridge 2 wind farms are to be built, we will strive to further enhance our proven track record in construction safety and on-going operational excellence.”

“Through strategic partnerships with world-class companies like BP, Sempra U.S. Gas & Power continues to grow a highly successful wind business while extending its position as a leading solar energy developer,” said Jeffrey W. Martin, president and CEO of Sempra U.S. Gas & Power.  “This is an exciting time for our company.  Over the next 12 months we expect to more than double the size of our operating wind and solar generation portfolios, resulting in significantly improved recurring cash flows from long-term contracted assets.”

BP will be the operator of both wind farms when they become commercially operational.

About BP

BP Wind Energy is a principal owner and operator of wind power facilities with interests in 13 wind farms. BP Wind Energy has a gross generating capacity of 1,730 MW – enough electricity to power over 500,000 average American homes.

For more information, visit the company’s Web site at

BP is one of the world's largest energy companies.  In the US, BP has approximately $52 billion in assets and employs some 23,000 staff.  The company's main businesses are exploration and production of oil and gas; refining, manufacturing and marketing of oil products and petrochemicals; transportation and marketing of natural gas.  With a growing business in wind power, advanced biofuels and one of the largest solar farms on the east coast, BP Alternative Energy will have invested around $7 billion in energy development, including $4 billion in the US by the end of 2011.  Our commitment is helping to create a secure and sustainable energy future for us all.

About Sempra U.S. Gas & Power

Sempra U.S. Gas & Power, LLC is a leading developer of renewable energy and natural gas solutions.  The company operates solar, wind and natural gas power plants that generate enough electricity for nearly 1 million homes, along with natural gas storage and pipelines, and distribution utilities. Sempra U.S. Gas & Power is a subsidiary of Sempra Energy (NYSE: SRE), a Fortune 500 energy services holding company with 2010 revenues of $9 billion.  The Sempra Energy companies’ nearly 17,500 employees serve about 31 million consumers worldwide.  For more information, visit www.SempraUSGP.com.

 

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