Bangor Hydro gets federal approval to acquire Central Maine Power assets

FERC has approved Bangor Hydro Electric‘s acquisition of nearly 5 miles of 345-kV line from Central Maine Power (CMP).

The line and related assets are located within Bangor Hydro’s service territory near the town of Orrington, Maine, and are currently under construction by CMP, according to FERC’s Nov. 28 order (FERC Docket EC13-7).

Bangor Hydro on Oct. 5 applied for FERC approval to acquire 4.87 miles of 345-kV line, part of CMP’s Maine Power Reliability Program (MPRP), a $1.4bn, 440-mile project CMP has undertaken to improve reliability.

In addition to this transaction, Bangor Hydro and CMP have said they plan for CMP to construct and transfer 4.87 miles of 115-kV line and related facilities in a transaction anticipated to occur in May 2014.

As part of its $1.4bn Maine Power Reliability Program (MPRP), CMP is in the process of building six new substations, upgrading more than 40 existing substations and installing or rebuilding nearly 440 miles of transmission line in 75 communities in lower and coastal Maine, according to the order.

The line was expected to be energized Nov. 3. Calls to Bangor Hydro and CMP were not returned as of press time on Nov. 28 .

Consideration for the transaction will be the net book value of the acquired assets as determined by Bangor Hydro and CMP shortly before closing, estimated to be about $8.3m as of October. 

Bangor Hydro is an electric utility wholly owned by Emera. CMP is a subsidiary of Iberdrola USA, which is a subsidiary of Iberdrola S.A.

 

This article was updated on Nov. 30, 2012, at 12:15 p.m. to reflect that the cost of the MPRP is $1.4bn. 

About Rosy Lum 525 Articles
Rosy Lum, Analyst for TransmissionHub, has been covering the U.S. energy industry since 2007. She began her career in energy journalism at SNL Financial, for which she established a New York news desk. She covered topics ranging from energy finance and renewable policies and incentives, to master limited partnerships and ETFs. Thereafter, she honed her energy and utility focus at the Financial Times' dealReporter, where she covered and broke oil and gas and utility mergers and acquisitions.