US-based company LS Power Equity Advisors has entered into an agreement with TransCanada Corporation to acquire around 3,950MW of generation resources in Northeastern US.
The agreement was signed through TransCanada’s affiliate Helix Generation and will see LS Power pay $2.2bn in cash to TransCanada, subject to working capital and other adjustments.
The transaction is expected to close by Q1 of next year, pending receipt of necessary regulatory approvals and third-party consents.
LS Power's chief executive officer Paul Segal said: “LS Power's experience owning and operating a diverse array of generating facilities throughout the Northeast uniquely positions us to acquire this portfolio of power plants.
“Each of these assets serves a distinct and crucial role to meet the demand needs in their respective Northeast markets.
“Moreover, these facilities are staffed by skilled personnel who maintain safe and efficient operations for their customers. We look forward to ensuring a smooth transition of ownership and responsible stewardship of these vital assets.”
As part of its acquisition agreement, LS Power will take over four power generation facilities, the 2,480MW Ravenswood multiple-unit generating natural gas facility in New York, the 778MW Ironwood natural gas combined-cycle facility, the 560MW Ocean State Power natural gas combined-cycle, and the 132MW Kibby windfarm in Maine.