EDF Energies Nouvelles announces that enXco, its US subsidiary and US utility Indianapolis Power & Light (IPL) reached an agreement to proceed with the 201 MW Lakefield Wind Project.

The original Power Purchase Agreement (PPA) between enXco and IPL for the Lakefield project was signed in June 2009. The PPA received approval by the Indiana Utility Regulatory Commision (IURC) in January 2010.

In March, IPL terminated unilaterally the PPA, following which enXco initiated arbitration against IPL. Subsequently IPL and enXco addressed IPL’s concerns and resumed the PPA as originally agreed. This allows the project to continue as initially planned with a revised project schedule anticipating commercial operation in late Q3 2011.

The Lakefield Project, to be built in southwestern Minnesota, is the second PPA between the two companies. The Hoosier Wind Project in Indiana is in operation and provides IPL with approximately 2% of the electricity sold to its retail customers. When Lakefield is operational, IPL anticipates wind energy will provide power for about 7% of its utility sales.