TransCanada completes $1 billion+ sale of New England hydro assets

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TransCanada completes $1 billion+ sale of New England hydro assets

Thu, 04/20/2017 - 12:04pm -- tim

The hydro station in Bellows Falls. VBM file photo.

Vermont Business Magazine TransCanada Corporation (TSX: TRP) (NYSE: TRP) announced in a press release today that it has completed the sale of its hydroelectric generation assets to Great River Hydro, LLC, an affiliate of ArcLight Capital Partners, LLC for US $1.065 billion. The sale includes 13 hydroelectric facilities, stations and associated dams and reservoirs on the Connecticut and Deerfield Rivers. The assets are located in New Hampshire, Vermont and Massachusetts with a total generating capacity of 584 megawatts (Vermont Yankee's output was 605 MW). The bulk of this generation is on the Connecticut River.

The state of Vermont formed a committee and briefly considered purchasing the dams itself after TransCanada announced in March 2016 that it would sell the hydro plants to help it buy a Texas gas pipeline company. The state also considered buying the facilities in 2005, when USGen ultimately sold them to Calgary-based TransCanada for $505 million. In both cases the cost was deemed to steep.

The 192 MW Moore facility is the largest conventional hydro station in New England.

Property tax disputes have been a common feature of the dams on both sides of the Connecticut River. In a long-running dispute between TransCanada and the town of Rockingham, the Vermont Supreme Court ruled in September 2016 that the Bellows Falls facility should be assessed at $127.4 million, not the $84 million TransCanada wanted.

Proceeds from the sale of these facilities will be used to repay debt financing raised to fund the 2016 Columbia Pipeline Group acquisition, which created one of North America's largest regulated natural gas transmission companies.

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With more than 65 years' experience, TransCanada is a leader in the responsible development and reliable operation of North American energy infrastructure including natural gas and liquids pipelines, power generation and gas storage facilities. TransCanada operates a network of natural gas pipelines that extends more than 91,500 kilometres (56,900 miles), tapping into virtually all major gas supply basins in North America. TransCanada is the continent's leading provider of gas storage and related services with 653 billion cubic feet of storage capacity. A large independent power producer, TransCanada currently owns or has interests in over 10,100 megawatts of power generation in Canada and the United States. TransCanada is also the developer and operator of one of North America's leading liquids pipeline systems that extends over 4,300 kilometres (2,700 miles), connecting growing continental oil supplies to key markets and refineries. TransCanada's common shares trade on the Toronto and New York stock exchanges under the symbol TRP. Visit TransCanada.com

Source: CALGARY, ALBERTA--(Marketwired - April 20, 2017)  TransCanada Corporation