for-phone-onlyfor-tablet-portrait-upfor-tablet-landscape-upfor-desktop-upfor-wide-desktop-up

Algonquin sees up to $55 mln hit as Texas freeze hits wind farms

Feb 19 (Reuters) - Canada’s Algonquin Power & Utilities said on Friday that some of its wind farms in Texas were hit by the deep freeze that has engulfed parts of the United States, causing power outages in the biggest energy-producing state.

Freezing temperatures stilled wind farms and knocked out power to more than four million people in Texas. It is not expected to relent until the weekend.

Algonquin said it expects the potential hit from the deep freeze on the company’s adjusted core earnings for this year to be between $45 million and $55 million, or about 5% to 6% of 2019’s earnings.

The company said it has declared force majeure on contracts and is assessing other potential mitigating options. (refini.tv/3dw9Wim)

Another energy provider Innergex Renewable Energy had also said on Wednesday that its wind farms in Texas had been hit by storm, leading to a potential financial impact of up to C$60 million ($47.23 million).

Many U.S companies, including FedEx Corp and General Motors Co, were forced to temporarily shut operations due to the winter storm. (Reporting by Rithika Krishna in Bengaluru; Editing by Shailesh Kuber)

for-phone-onlyfor-tablet-portrait-upfor-tablet-landscape-upfor-desktop-upfor-wide-desktop-up