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Kingman
The Company's Kingman Wind Farm is a 10.5 MW fully integrated combined wind and solar energy generation facility on 1,110 acres of land owned by the Company in Kingman, Arizona. The Kingman Project began commercial operations effective September 24, 2011. The assets include five (5) Gamesa turbines, 500 KW of Suntech Crystalline PV solar cells, a collection system, a substation, roads, interconnection facilities, a maintenance building and a fixed price PPA with UNS Electric, Inc, a subsidiary of Unisource Energy Corporation of Arizona ("UNS"), which expires on September 24, 2031.
On October 31, 2011 the Company submitted its Kingman's project cash grant application to the US Department of the Treasury. The cash grant is a US Federal Government program to encourage renewable energy development through a 30% cash grant paid by the US Department of Energy and is part of the American Recovery and Reinvestment Act of 2009. The Company submitted $31,081,275 of eligible costs for an estimated cash grant of up to $9,324,382, which is subject to review and approval from the Department of Treasury. The Company expects applications to be reviewed and payments made within 60 days from the later of the date of the complete application or the date the property is placed in service in accordance with the Program Guidance. As of September 11, 2011, 19,875 projects were approved with funding totaling $9.2 Billion in accordance with the Department of Treasury website.
On December 20, 2010, the Company signed a Credit Agreement with Keybank National Association ("Keybank") that provided the Company with a $4.2 million Treasury Grant Loan and a Construction Loan facility of up to $16.0 million. The loans are secured by a first lien on all of the assets of Kingman Energy. The Company expects to repay the $4.2 million Treasury Grant Loan upon receipt of the cash grant.
On December 20, 2010, the Company signed a loan agreement with RMT, Inc. for $4.4 million secured by a second lien on the Kingman project assets. The Company expects to repay the $4.4 million RMT loan upon receipt of the cash grant.
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