SDWP is a limited liability company formed to provide an opportunity for South Dakota residents to invest in the growing wind industry. Four South Dakota organizations have helped develop SDWP to provide the opportunity for their members, and other South Dakotans, to invest as owners and to provide debt financing for this enterprise. The organizing groups are East River Electric Coop, SD Corn Utilization Council, SD Farmers Union and SD Farm Bureau.
SDWP was formed in January 2010. A board of directors was formed with representation from the four sponsoring organizations. SDWP hired Val-Add Service Corp, of Chester SD (www.val-addservice.com) to serve as project coordinators. SDWP negotiated with Basin Electric for a Construction Contract, Operations and Maintenance Contract and Power Purchase Agreement to build and operate the wind farm. SDWP then began a public intrastate offering in SD to raise the equity and debt necessary to construct the wind farm. Over the course of 8 weeks, SDWP had 28 investor meetings and raised nearly $17,000,000 from over 600 SD investors in debt and equity to fund the project. Construction began on October 5, 2010, and operations commenced in February 2011.
SDWP was formed to construct, own and operate a seven-turbine wind farm owned by South Dakota investors and to take advantage of the following benefits available to wind energy owners and investors:
1. Potential earnings from wind farm operations.
2. Opportunity to earn beneficial interest rates on notes issued by SDWP.
3. Accelerated depreciation (6 yrs), providing tax loss advantages to owners that can offset other passive income.
4. Grant of clean energy stimulus money for 30% of eligible construction costs.