RE: RE: cash grant 78,334,713 WND has been awarded a cash grant in the amount of $78,334,713.00 under U.S. Internal Revenue Code Section 1603 in connection with Western Wind's 120 MW Windstar Project in Tehachapi, California.
The U.S. Treasury Department has notified Western Wind that the payment will be made within seven days of July 9, 2012.
The amount of the award is $13,221,994 below the amount originally requested by Western Wind, apparently due to changes in the administration of the program by the Treasury Department which has reduced the suggested guidance on the amount of any developer fee which can be included in the 30% cash grant amount. Western Wind's management believes that, notwithstanding the revised Treasury position on developer fees, the developer fee included in the cash grant application for the Windstar project was proper and is supported by appropriate analyses by our external counsel and tax advisors. Accordingly, Western Wind intends to engage in discussions with the Treasury Department regarding the appropriate amount of the developer fee for the project and to request that the balance of original amount of cash grant requested be reinstated and paid