Innergex Renewable Energy reports that the recent and ongoing unprecedented extreme winter weather conditions in Texas are having an impact on its ability to produce electricity at its Flat Top wind facility in Mills County, which is expected to resume to normal operations by the week-end. As for our Shannon wind facility in Clay County, Foard City wind facility in Foard County and the Phoebe solar facility located in Winkler County, while some power generation has continued, the combined effect of supply interruptions, abnormal market pricing conditions and contractual obligations to supply a predetermined daily generation under the power hedges, have had both positive and negative financial impacts depending on varying conditions at different times.

While the higher market price environment is expected to have a net favourable impact on the consolidated revenues and Adjusted EBITDA, the Corporation estimates the potential adverse financial impact of the weather events on a consolidated basis to be between CAN$45 million and CAN$60 million, due to the unfavourable impact from the realized losses on the power hedges, and from the Corporation’s share of loss of joint ventures and associates also related to realized losses on the power hedges. Force majeure and other mitigating possibilities are being evaluated.

“Given the magnitude of the severe weather system, we are glad that all our employees are safe and sound. Our team has shown an exceptional dedication and we would like to thank all of them for their remarkable efforts at mitigating the weather system’s impacts on our activities,” said Michel Letellier, President and CEO of Innergex. “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.”

KeyFacts Energy: Innergex US country profile