Comments on: GE & JP Morgan Invest $225 Million in 662.5-MW Capricorn Ridge Wind Farm

By: David

David — Thu, 01 Mar 2012 04:34:00 +0000

Thanks Bob – nice clear explanation.

David.

By: Zachary Shahan

Zachary Shahan — Wed, 29 Feb 2012 12:11:00 +0000

I know.

When I saw that, I had to do a triple-take

Checked & checked & checked.

We probably actually wrote on it years ago when it went up, but didn’t check for that.

By: lukealization

lukealization — Wed, 29 Feb 2012 05:29:00 +0000

662.5MW is absolutely massive…

By: Bob_Wallace

Bob_Wallace — Wed, 29 Feb 2012 04:21:00 +0000

Most likely it means that they purchased some of the equity that NextEra Energy Resources held in the project.

That means that GE and JP see this as a good investment, a project that is up and going, and from which they can earn profits over time.

For NextEra, it allows them to pull cash out of the project in order to fund future projects. It’s not unusual to have companies that specialize in creating projects and then sell them on to others to own long term.

Think of it like a company that builds condos. They sell some of the units to individual buyers in order to raise funds for their next build.

By: David

David — Wed, 29 Feb 2012 04:01:00 +0000

What does it meant to “invest” in a wind farm that is already built? I assume the capitol has already been raised for the cost of the farm. I would like to understand the details of this financial transaction. Thanks. David.