SunEdison, Inc. and Dominion announced a joint venture for the Three Cedars solar project, a 265 megawatt (MW) DC, or 210 MW AC, solar project in Iron County, developed by SunEdison. The announcement marks the expansion of a joint venture recently announced regarding Dominion's investment in the 420 MW DC Four Brothers solar project in Utah.
Similar to Four Brothers, the Three Cedars project is contracted under long-term power purchase agreements for 20 years with PacifiCorp (A-/A3), a subsidiary of Berkshire Hathaway Energy. The project is now under construction and fully financed with an expected commercial operation date of mid-2016.
Under the terms of the expanded JV, Dominion will invest approximately $320 million to acquire 50 percent of the cash equity and 99 percent of the tax equity in Three Cedars, including funding of construction. SunEdison expects to fully finance the $80 million balance of the capital for Three Cedars through a loan from Deutsche Bank through construction and long-term ownership. Dominion's aggregate investment in the joint venture is approximately $830 million to acquire 50 percent of the cash equity and 99 percent of the tax equity in Four Brothers and Three Cedars, including funding of construction. Utah Business Magazine