New Jersey Resources (NYSE: NJR) said in a Nov. 24 earnings statement for its fiscal year ended Sept. 30 that its NJR Clean Energy Ventures (NJRCEV) unit has added new solar and wind projects in recent months.
For the three-month period ended Sept. 30, NJRCEV reported net financial earnings (NFE) of $1.9 million, compared with a net financial loss of $7.6 million in the same period last year. During fiscal 2015 and 2014, NJRCEV had a minority equity interest in Own Energy Inc., an onshore wind developer which provided NJRCEV with the option to acquire wind farms that fit its investment profile. During the fourth quarter of fiscal 2015, Own Energy was acquired by a power producer and NJRCEV realized a $3 million pre-tax gain in exchange for its ownership interest.
During fiscal 2015, NJRCEV placed into service $68.8 million of ground-mounted commercial solar systems in New Jersey, totaling 26.5 MW, growing its commercial solar portfolio to over 82 MW. In the fourth quarter of fiscal 2015, NJRCEV placed into service a $15.5 million, 6-MW ground-mounted, grid-connected system in North Hanover, New Jersey.
As of the end of fiscal 2015, NJRCEV’s wind portfolio had grown to nearly 30 MW. Construction continues on the company’s third onshore wind project, the Alexander Wind Farm, located in Rush County, Kansas, approximately 120 miles northwest of Wichita. NJRCEV will invest approximately $85 million to construct, own and operate the wind farm with a total capacity of 48.3 MW.
Energy and renewable attributes produced at the Alexander Wind Farm will be sold under two long-term agreements. The Kansas City Board of Public Utilities has signed a 20-year power purchase agreement (PPA) for approximately 50% of the energy. Yahoo! Inc., the global Internet corporation headquartered in Sunnyvale, California, has signed a 15-year agreement for the additional 50% to offset much of its energy usage in the Great Plains region. NJRCEV expects the Alexander Wind Farm to also qualify for federal production tax credits (PTCs), which will be utilized by NJR. NJRCEV expects this project to be placed in service in the first quarter of fiscal 2016.
New Jersey Resources is a Fortune 1000 company that provides safe and reliable natural gas and clean energy services, including transportation, distribution and asset management. With annual revenues in excess of $3 billion, NJR is comprised of five primary businesses, including NJRCEV.