Developers of wind power projects in the so-called Panhandle in northern Texas are turning to letters of credit (L/Cs) to help them start new projects.

The Texas Panhandle has been identified as one of the fastest growing wind power producing regions in the US over the past decade because of its sustained winds.

Justification

Ten wind developers have promised to put about US$33 million to prove their commitment to expanding wind power in the Panhandle.

Two of the developers have recently filed written testimony with the Texas Public Utility Commission detailing how much money via L/Cs they are pledging as collateral to convince the commission that new transmission lines in the area will be needed.

L/C details

Higher Power Energy said it intends to post a L/C totalling US$8.75 million for a project with an 875-megawatt capacity and another L/C for US$550,000 for a smaller 55 megawatt project.

Cielo Wind Services plans two developments. It says it will post a US$500,000 L/C for each of its projects.

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