REG - Ecofin US Renewables - Whirlwind Update

Ecofin US Renewables Infrastructure TrustAnnouncement

27/07/2023 07:15

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RNS Number : 3265H  Ecofin US Renewables Infrastr.Trust  27 July 2023

 

This Announcement contains inside information for the purposes of Article 7 of
the Market Abuse Regulation EU 596/2014 as it forms part of UK domestic law by
virtue of the European Union (Withdrawal) Act 2018.

 

27 July 2023

 

ECOFIN U.S. RENEWABLES INFRASTRUCTURE TRUST PLC

(the "Company")

 

Whirlwind Update

 

·      Establishment of a temporary alternate transmission route

·      Rebuilding of the Matador substation

·      Progress of insurance claims for business interruption and
necessary repairs

 

Further to the Whirlwind Update announcement published by the Company on 26
June 2023 (RNS Number: 8161D), related to the 21 June 2023 tornado in Matador,
Texas, the Company's 59.8 MW Whirlwind Energy wind farm ("Whirlwind") in
Floydada, Texas, remains temporarily offline. As previously communicated, the
tornado left the Whirlwind asset itself unharmed and affected only five
project-owned transmission poles at the far end of Whirlwind's transmission
line along with the American Electric Power ("AEP") owned substation in
Matador, Texas through which Whirlwind transmits electricity.

 

The Investment Manager continues to work closely with Whirlwind's asset and
operations managers, AEP and The Electric Reliability Council of Texas (ERCOT)
authorities, to put in place a plan to remedy the outage at Whirlwind. The
Company is pleased to report that, based on AEP estimates, we expect to
achieve interconnection during the fourth quarter of 2023 via an alternate
route, past Matador through a substation in Paducah, Texas.  This alternate
transmission arrangement will allow 80% capacity throughput relative to full
capacity (50 MW versus the full capacity of 59.8 MW) on an interim basis, with
a corresponding reduction in forecasted cash flows. Due to the importance of
power sources such as the Company's Whirlwind asset to the ERCOT system, AEP
intends to build a new substation at Matador as quickly as possible and return
Whirlwind to full capacity. AEP expects this process to take approximately 18
months, at which time Whirlwind will return to its prior interconnection route
and to full capacity.

 

The Company and its insurance provider are working together to file claims,
where applicable, for business interruption and necessary repairs to the
damaged project-owned transmission poles. The claims are yet to be finalised
with the insurers, but it is expected that the Company's insurance policy will
provide coverage, at a minimum, for both the damaged transmission poles and
for 120 days of business interruption losses that occur from outages
(following a 45-day waiting period).

 

The Company and the Investment Manager continue to dedicate significant
resources to accelerate the Whirlwind remediation plan as outlined, working
closely with all relevant stakeholders. Further announcements will be made as
appropriate.

 

For further information, please contact:

 

 Ecofin Advisors, LLC (Investment Manager)             +1 913 981 1020

 Edward Russell

 Eileen Fargis

 Jason Benson

 Michael Hart

 Peel Hunt LLP (Joint Corporate Broker)                +44 20 7418 8900

 Liz Yong

 Luke Simpson

 Huw Jeremy

 Stifel (Joint Corporate Broker)                       +44 20 7710 7600

 Edward Gibson-Watt

 Rajpal Padam

 Madison Kominski

 Apex Listed Companies Services (UK) Limited (Company  +44 20 3327 9720
 Secretary)

 Martin Darragh

 Maria Matheou
 FTI Consulting (Financial PR)                         +44 79 7607 5797

 Matthew O'Keeffe

 Mitch Barltrop

 Vee Montebello

Further information on the Company can be found on its website
at https://uk.ecofininvest.com/funds/us-renewables-infrastructure-trust-plc/
(https://uk.ecofininvest.com/funds/us-renewables-infrastructure-trust-plc/) .

 

The Company's LEI is 2138004JUQUL9VKQWD21.

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