WESTMORELAND ENERGY, LLC (WELLC)

WELLC owns 100% of Roanoke Valley I and Roanoke Valley II (“ROVA”), coal-fired power plants located in North Carolina.

These power plants are among a total of eight independent power projects WELLC helped develop, and all three are operational. Each power plant sells electricity under a long-term power sales contract to a utility. Developed as true cogeneration units, each power plant also sells steam to a local industrial facility.

This approach to power development is especially attractive to Westmoreland because it allows for project financing and provides a reasonably stable long-term stream of earnings.

The ROVA plants have operated at high capacity factors, exceeding the five-year averages typical for units of its size. Capacity factor is a measurement of the generation performance of a power plant and ROVA’s power supply agreement incents it to achieve a high capacity factor.