Energy company Allete has agreed to sell a more than 100MW wind project in Wisconsin to a pair of publicly owned utilities.
The deal will see Wisconsin Public Service Corp (WPSC), a subsidiary of the WEC Group, and Madison Gas and Electric Co (MG&E) purchase the 101MW Red Barn wind project in Grant County.
The two parties are expected to pay a fee of around $162 million for the asset, PFR understands. Allete will continue to develop the project until its completion, after which the two utilities will acquire the asset.
As part of the transaction, WPSC and MG&E will split their ownership interests, with WPSC acquiring a 90% stake in the project, totaling 90.9MW of generation, and MG&E acquiring a 10% stake at 10.1MW of generation.
The Red Barn project is located in the MISO region and is under construction, with the project expected to come online later this year. The utilities are expecting to sell the output of the project directly to their customers once it comes online.
The transaction is still subject to regulatory approval and customary closing conditions, but is expected to close before the end of this year.