BP and Sempra U.S. Gas & Power Move Into Full Construction of $800m Wind Farm in Kansas

Gov. Sam Brownback touts benefits of major wind energy projects at ceremony

Apr 4, 2012

BP Wind Energy and Sempra U.S. Gas & Power announced today that the Flat Ridge 2 wind farm has moved into full construction. Upon completion, it will be the largest wind project in the state of Kansas and a major investment in renewable energy for U.S. consumers.

The facility, located on a 66,000-acre site about 40 miles southwest of Wichita, represents a combined investment of more than $800 million and will have the capacity to produce 419 MW of electricity, enough to light more than 125,000 homes.
To mark the launch of construction, Kansas Gov. Sam Brownback and other state and local officials attended a ceremony in which they signed one of the massive wind blades that will be installed at the facility.

“The development of the Flat Ridge 2 wind farm is an important component to achieving energy independence and revitalizing rural Kansas,” Brownback said at the event.  “We congratulate BP and Sempra U.S. Gas and Power for their innovative thinking and planning in moving this project into full construction.”

At peak construction, the Flat Ridge 2 project will create some 500 jobs. Roughly 30 permanent jobs will be created once the wind farm begins commercial operation, which is expected by the end of the year. 

The companies also announced that the power from a 51 MW expansion project to be completed in 2012 has been sold under a separate long-term agreement with Arkansas Electric Cooperative Corporation (AECC), a Little Rock-based generation and transmission cooperative. 

John Graham, president and CEO, BP Wind Energy said the project underscores the company’s commitment to domestic energy security and to the U.S. economy.

“Wind is not only a growing part of BP’s energy portfolio, it is an increasingly important provider of low-carbon electricity and a vital contributor to U.S. energy supplies,” Graham said.

“Because of the state’s leadership and natural resources, Kansas is becoming a hub for domestic wind energy production, innovation and job creation,” said Jim Sahagian, vice president of renewables for Sempra U.S. Gas & Power.  “We look forward to playing a role in the continued growth of this dynamic market as we continue expanding our solar and wind energy portfolio.”

Electricity produced at the Flat Ridge 2 Wind Farm has been sold under long-term power purchase agreements with Associated Electric Cooperative and Southwestern Electric Power Company, a unit of American Electric Power.

As previously announced, BP and Sempra U.S. Gas & Power are equal partners for 419 MW of the wind farm, and are finalizing joint venture agreements for the additional capacity.

BP will be the operator of the Flat Ridge 2 Wind Farm and expansion project when they become commercially operational. 

AECC’s agreement was made possible through the efforts of the National Renewables Cooperative Organization, which enables cooperatives nationwide to pool the ownership and benefits of renewable resources.  AECC is one of 24 members in 19 states.

About BP
BP has invested more in the United States over the last five years than any other oil and gas company. With more than $50 billion in capital spending between 2007 and 2011, BP invests more in the U.S. than in any other country. The company is the nation’s second largest producer of oil and gas, a major oil refiner and a leader in alternative energy sources including wind power and biofuels. With 23,000 U.S. employees, BP supports nearly a quarter of a million domestic jobs through its business activities. For more information visit www.bp.com.

BP Wind Energy is a principal owner and operator of wind power facilities across the U.S., with interests in 13 wind farms.  BP Wind Energy has a gross generating capacity of 1,955 MW – enough electricity to power over 586,000 average American homes. For more information, visit the company’s Web site at http://www.bpalternativenergy.com

About Sempra U.S. Gas & Power
Sempra U.S. Gas & Power, LLC is a leading developer of renewable energy and natural gas solutions.  The company operates solar, wind and natural gas power plants that generate enough electricity for nearly 1 million homes, along with natural gas storage and pipelines, and distribution utilities. Sempra U.S. Gas & Power is a subsidiary of Sempra Energy (NYSE: SRE), a Fortune 500 energy services holding company with 2011 revenues of $10 billion.  The Sempra Energy companies’ nearly 17,500 employees serve about 31 million consumers worldwide.  For more information, visit www.SempraUSGP.com

Notes to Editors
Included in BP Wind Energy and Sempra U.S. Gas & Power’s joint venture portfolio:

• The 200 MW Fowler Ridge 2 Wind Farm in Benton County, Indiana located about 90 miles northwest of Indianapolis.  The wind farm utilizes 133 GE sle turbines each with a rated capacity of 1.5 MW.  The wind farm became operational in December 2009.  BP is operator.
• The 250 MW Cedar Creek 2 Wind Farm in Weld County, Colorado located some 20 miles north of New Raymer.  The wind farm utilizes 63 GE sle wind turbines, each with a rated capacity of 1.6 MW, and 60 Nordex wind turbines, each with a rated capacity of 2.5 MW.  The wind farm became operational in July 2011.  BP is operator.
• The 141 MW Mehoopany Wind Farm in Wyoming County, Pennsylvania located some 20 miles northeast of Scranton is in construction.  The wind farm will utilize 88 GE sle turbines, each with a rated capacity of 1.6 MW and is expected to be in commercial operation by year-end 2012.  BP will be the operator.

For Sempra Energy Investors
This press release contains statements that are not historical fact and constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995.  These statements can be identified by words like "believes," "expects," "anticipates," "intends," "plans," "estimates," "may," "will," "would," "could," "should," "potential," "target," "depends," or similar expressions, or discussions of strategies, plans or intentions. These forward-looking statements represent our estimates and assumptions only as of the date of this news release. We assume no obligation to update or revise any forward-looking statement as a result of new information, future events or other factors. Forward-looking statements are not guarantees of performance.  They involve risks, uncertainties and assumptions.  Future results may differ materially from those expressed in the forward-looking statements.  Forward-looking statements are necessarily based upon various assumptions involving judgments with respect to the future and other risks, including, among others: local, regional, national and international economic, competitive, political, legislative and regulatory conditions and developments; actions by the California Public Utilities Commission, California State Legislature, Federal Energy Regulatory Commission, Nuclear Regulatory Commission, California Energy Commission, California Air Resources Board, and other regulatory, governmental and environmental bodies in the United States and other countries where the company does business; capital market conditions, including the availability of credit and the liquidity of our investments; inflation, interest and exchange rates; energy markets, including the timing and extent of changes and volatility in commodity prices; the availability of electric power, natural gas and liquefied natural gas; weather conditions, natural disasters, catastrophic accidents, and conservation efforts; wars, terrorist attacks and cybersecurity threats; business, regulatory, environmental and legal decisions and requirements; the status of deregulation of retail natural gas  and electricity delivery; the timing and success of business development efforts and construction, maintenance and capital projects; the inability or determination not to enter into long-term supply and sales agreements or long-term capacity agreements; the resolution of litigation; and other uncertainties, all of which are difficult to predict and many of which are beyond the control of the company.  These risks and uncertainties are further discussed in the reports that Sempra Energy has filed with the Securities and Exchange Commission.  These reports are available through the EDGAR system free-of-charge on the SEC's website, www.sec.gov, and on the company's website at www.sempra.com.

Sempra U.S. Gas & Power, LLC is not the same company as the utility, San Diego Gas & Electric (SDG&E) or Southern California Gas Company (SoCalGas), and Sempra U.S. Gas & Power, LLC is not regulated by the California Public Utilities Commission.

For further information: Media Inquiries: BP Press Office: 281 366 1236 Sempra U.S. Gas & Power: 877 855 7887