06/10/2011 09:05 AM ET
News from: Juhl Wind, Inc.
Juhl Wind Gets Service Contract for 2, 20MW Wind Farms, Estimated $900,000
Juhl Wind, Inc., (OTC Bulletin Board: JUHL) the Leader in Community Wind Power, announced the recent start of a new wind farm maintenance service contract for the recently completed Adams and Danielson wind farms located in Meeker County in West Central Minnesota.
Juhl completed the development and construction of the wind farms, representing nearly 40 MW of wind power generation, in March 2011. Each project cost approximately $42 million and both were completed and put into commercial operation in mid-March 2011. The projects were completed on time and under budget.
Juhl served as the developer and owner's representative for construction and commissioning phase of the projects. Shortly after completing the startup of each wind farm, Juhl received a contract to supply full-scale turbine maintenance services to each system, for an initial 2 year term, estimated at approximately $900,000.
The Company first announced the development of the Adams and Danielson wind farms in December 2009 and subsequently announced the start-up of construction in October 2010.
Each project uses 12, Alstom Eco 86 Wind Turbine Generators. The clean energy generated is being purchased by Xcel Energy under the terms of a 20 year, 19.8 MW Power Purchase Agreement with each wind farm.
The wind farms incorporate one of Juhl Wind's "Community Wind" based structures in which ownership is shared with the farmers whose land on which the system is located.
"The Adams and Danielson wind farms represent our approach to providing the full range of wind farm services to our customers," stated Dan Juhl, Chairman and CEO of Juhl Wind Inc. "For each project, we provided the full set of development services, arranged financing and then oversaw construction and system start-up. Now, we will be providing the ongoing turbine maintenance services and we would expect that relationship to continue for many years to follow the initial term."
"Our contract to provide services to the Adams and Danielson wind farms is a direct example of the expansion of our service business in 2011," added John Mitola, President of Juhl Wind Inc. "We told investors in our 2011 Outlook call that we had a plan to dramatically expand our Operations and Maintenance subsidiary, Juhl Energy Services, in 2011 and beyond and this contract is an important first step.
We expect growth in our service business to come from wind farms we develop and from those in our region, owned and operated by other long-term trading partners and local owners. This is one of two areas we expect to grow alongside our core development business - our service business, Juhl Energy Services, and our wind farm ownership business, Juhl Wind Asset Investment, Inc.
We announced our first major growth step in wind farm ownership a month ago with our acquisition of the Woodstock Hills wind farm and now we are announcing this growth initiative for our service business. In this way, our investors can see we continue to execute on our overall plan for growth."
About Juhl Wind, Inc.
Juhl Wind is an established leader in Community Based Wind Power development and management, focused on wind farm projects throughout the United States and Canada. Juhl Wind pioneered community-based wind farms, developing the currently accepted financial, operational and legal structure providing local ownership of medium-to-large scale wind farms.
To date, the Company has completed 18 wind farm projects and provides operations management and oversight across the portfolio. Juhl Wind services every aspect of wind farm development from full development and ownership, general consultation, construction management and system operations and maintenance.
With its acquisition of Next Generation Power Systems ("NextGen'), Juhl Wind also provides full sales and service to smaller, on-site wind and solar projects in addition to our larger Community Wind Farms. Juhl Wind is based in Woodstock, Minnesota and is traded on the OTCBB under the symbol 'JUHL'.
FORWARD LOOKING STATEMENTS: This news release includes forward-looking statements within the meaning of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995 including statements that reflect Juhl Wind's current expectations about its future results, performance, prospects and opportunities. Juhl Wind has tried to identify these forward-looking statements by using words and phrases such as "may," "will," "expects," "anticipates," "believes," "intends," "estimates," "plan," "should," "typical," "preliminary," "hope," or similar expressions. These forward-looking statements are based on information currently available to Juhl Wind and are subject to a number of risks, uncertainties and other factors that could cause Juhl Wind's actual results, performance, prospects or opportunities in the remainder of 2011 and beyond to differ materially from those expressed in, or implied by, these forward-looking statements and specifically those statements referring to the projects mentioned herein. New projects are subject to large, third party risks that may not be in control of Juhl Wind including the timing of funding and actual construction. While the wind farms noted above are large-scale construction projects Juhl Wind will not be the primary contractor for the provision of certain services, as it is in certain of its other projects. These risks are referenced in Juhl Wind's current 8K or as may be described from time to time in Juhl Wind's subsequent SEC filings; and such factors as incorporated by reference.
For more information please contact:
Jody JansonPhone Investor Relations