Cold spell in Texas to impact Innergex's financials by up to USD 47m

Canadian power producer Innergex Renewable Energy Inc (TSE:INE), which runs several plants in Texas, faces a negative impact of up to CAD 60 million (USD 47.3m/EUR 39.2m) from the ongoing extreme winter weather conditions in the Lone Star State.

Innergex said in a statement that it estimates the potential adverse financial impact of the weather events on a consolidated basis to range from CAD 45 million to CAD 60 million. It blamed this on the unfavourable impact from the realised losses on power hedges and from its share of loss of joint ventures and associates also related to realised losses on the power hedges.

The company informed that the weather conditions in Texas obstruct its ability to generate electricity from the 200-MW Flat Top wind park in Mills County. The particular facility, in which Innergex holds a 51% interest, is expected to resume normal operations by the end of the week.

At the same time, partial power production continues at the 204-MW Shannon wind park in Clay County, the 350.3-MW Foard City wind farm in Foard County and the 250-MW Phoebe solar plant in Winkler County. Innergex noted that it has recognised both positive and negative financial impacts with regard to these three facilities due to the combined effect of supply interruptions, abnormal market pricing conditions and contractual obligations to supply a predetermined daily generation under the power hedges.

The company owns the Phoebe and Foard City plants in full, and has a 50% interest in the Shannon wind park.

“Fortunately, none of our installations have suffered damages, and once the weather conditions improve, our skilled teams will work safely to progressively resume normal operations,” Michel Letellier, president and CEO of Innergex, said, while also stressing that all employees are “safe and sound.”

(CAD 1.0 = USD 0.788/EUR 0.653)

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