Western Wind Energy Corp. - Tax Credits and Yabucoa Update
TSX.V Symbol: "WND"
OTCQX Symbol: "WNDEF"
Issued and Outstanding: 69,820,125
VANCOUVER,
Jan. 2, 2013 /CNW/ - Western Wind
Energy Corp. - (the "Company" or "Western Wind") (TSX Venture
Exchange - "WND") (OTCQX - "WNDEF") announces an update to its 30
MW Yabucoa solar project located within the municipality of
Yabucoa, Puerto Rico. Western Wind
has provided revised civil and electrical drawings to the lender's
independent engineer for review. Western Wind changed the design to
accommodate new inverters after the previous industry respected
inverter vender entered into financial restructuring.
Western Wind is continuing to work with the
Puerto Rico Electric Power Authority ("PREPA") in meeting its new
Minimum Technical Requirements for frequency regulation and power
control.
The completion of these outstanding technical
issues and subsequent financial close will significantly increase
the valuation of the entire company, which is consistent to our
previous July 30, 2012 news release
indicating financial close of Yabucoa is an essential and important
milestone needed for shareholders to receive the highest value in
the sales process. Financial close will not happen before
January 28, 2013 and therefore the
current Brookfield bid does not
reflect this significant milestone and achievement.
Tax Credits
For the monumental benefit of the entire US wind
energy industry, including Western Wind, today the United States
Congress approved a vital extension of the Production Tax Credit,
the Investment Tax Credit and Bonus Depreciation. The Investment
Tax Credit allows 30% of an entire wind project's eligible capital
cost to be claimed as a full tax credit to a US taxpayer. In the
alternative, the Production Tax Credit allows a credit of
2.2 cents per kwh for 10 years of the
project's life, plus an inflation adjuster.
This is phenomenal news for the Western Wind
shareholder, as all of our development assets must now be
re-evaluated and appraised for their full development potential, as
the new credits cover a wide variety of funding options.
Jeff Ciachurski, President of Western Wind
Energy states "it is crystal clear to Western Wind shareholders,
that the Brookfield bid price does
not include Yabucoa nor did it ever include the assumption that the
wind tax credits would ever been extended. Not only did
Congress extend the Production Tax Credit, it also extended the
Investment Tax Credit and Bonus Depreciation. In essence, US
Treasury is paying for 30% of the capital costs of a wind project
in the US. This amount is hugely significant and infers that
the United States is still the # 1
place in the world to be building, owning and operating wind and
solar facilities. In countries outside of the US, the
shareholders have to dilute themselves by paying for 30% of a wind
or solar project(s) capital costs by way of cash equity
contribution. This celebrated move by the United States
Congress adds deep value to our development pipeline."
ABOUT WESTERN WIND ENERGY CORP.
Western Wind is an independent vertically
integrated renewable energy production company that owns and
operates wind and solar generation facilities with 165 net MW of
rated capacity operating in the States of California and Arizona. Western Wind further owns
substantial development assets for both solar and wind energy in
the U.S. The Company is headquartered in Vancouver, BC and has branch offices in
Scottsdale, Arizona and
Tehachapi, California.
Western Wind trades on the TSX Venture Exchange under the symbol
"WND", and in the United States on
the OTCQX under the symbol "WNDEF".
Western Wind owns and operates three wind energy
generation facilities in California, and one fully integrated combined
wind and solar energy generation facility in Arizona. The three operating wind
generation facilities in California are comprised of the 120MW
Windstar, the 4.5MW Windridge, both in Tehachapi, and the 30MW Mesa facility near
Palm Springs. The facility
in Arizona is the Company's 10.5MW
Kingman integrated solar and wind
facility. The Company is further developing wind and solar
energy projects in California,
Arizona, and Puerto Rico.
ON BEHALF OF THE BOARD OF DIRECTORS
"SIGNED"
Jeffrey J. Ciachurski
President & Chief Executive Officer
Neither the TSX Venture Exchange nor its Regulation Services
Provider (as that term is defined in the policies of the TSX
Venture Exchange) accepts responsibility for the adequacy or
accuracy of this release.
CAUTIONARY STATEMENT ON FORWARD-LOOKING INFORMATION
This news release contains certain statements
that may be considered "forward-looking statements, such as
references to the intended sale of Western Wind and its assets.
Forward looking statements are statements that are not historical
facts and are generally, but not always, identified by the words
"expects", "plans", "anticipates", "believes", "intends",
"estimates", "projects", "potential" and similar expressions, or
that events or conditions "will", "would", "may", "could" or
"should" occur. The forward-looking statements in this press
release include statements regarding the value of a potential sale
of the Company based on expressions of interest received from
auction participants, alternative sales discussions with third
parties and potential transactions resulting from such discussions.
The forward-looking statements included in this press release are
based on reasonable assumptions, including that the expressions of
interest and discussions with third parties may result in a higher
potential sales price and that the Company will be able to
successfully negotiate and complete a sale with a third party.
Factors that may cause results to vary from anticipations include
the risk that the Company may not be able to successfully negotiate
a sale on terms more favourable than pursuant to the Offer and even
if it is able to negotiate such a sale, that may not be able to
satisfy applicable conditions, including receipt of requisite
approvals, or complete the transaction. Although Western Wind
believes the expectations expressed in the forward-looking
statements are based on reasonable assumptions, such statements are
not guarantees of future outcomes and actual results may differ
materially from those contained in forward looking statements.
Forward looking statements are based on the beliefs, estimates and
opinions of Western Wind's management on the date the statements
are made. Western Wind undertakes no obligation to update these
forward-looking statements in the event that management's beliefs,
estimates or opinions, or other factors, should change, except as
required by law.
SOURCE Western Wind Energy