Allete subsidiary Allete Clean Energy has agreed to buy AES Corporation’s three wind farms in the states of Minnesota, Iowa and Oregon for $27m.
The 231MW facilities, which are located in Lake Benton, Minnesota, Storm Lake, Iowa, and Condon, Oregon, will be acquired in 2014.
The output of these facilities will be sold under power purchase agreements.
Allete Clean Energy president Eric Norberg said that this transaction will deliver incremental cash flows and the potential for long-term earnings growth while positioning Allete Clean Energy in new markets.
"We plan to leverage these initial acquisitions as the business of renewable energy matures to the next level," Norberg added.
In addition, the company has also agreed to buy 101MW Armenia Mountain wind farm in Pennsylvania in mid-2015.
The acquisition is due for clearance by the Federal Energy Regulatory Commission.
Allete chairman, president and CEO Alan Hodnik said that this acquisition is right in line with the company’s strategy of growing energy-centric earnings streams that expand its customer base and complement its traditional utility operations.
"It also supports our belief that cleaner energy sources will become increasingly valuable as we participate in our nation’s energy evolution," Hodnik added.
"By 2015, Allete and its business subsidiaries may have nearly 850MW of installed wind generation."
