New York – December 3, 2012 – Energy Investors Funds (“EIF”) announced today that its United States Power Fund IV has completed the acquisition of two operating hydroelectric projects, Allegheny 8 and Allegheny 9 (together “Allegheny” or the “Projects”) in partnership with Northbrook Energy.
Terms of the deal were not disclosed.
Allegheny are two run-of-the-river hydroelectric projects totaling 30.4 MW located on the Allegheny River in Pennsylvania, approximately 35 miles from Pittsburgh. Each plant has a long-term power purchase agreement (“PPA”) with New York State Electric & Gas Corporation (“NYSEG”) that runs through August 2030. The Projects began commercial operation in 1990 and have been very well maintained throughout their use. Northbrook Power Management (“NPM”), a wholly-owned subsidiary of Northbrook Energy, will operate the Projects going forward.
“We’re happy to complete the acquisition of Allegheny,” said Herb Magid, a Managing Partner at EIF. “We believe the project has all of the attributes we look for in an investment. It has a solid operational history, a long-term off-take contract with a highly rated utility for the power that the plants produce, and great prospects for operating efficiently well into the future. We’re pleased to make this investment on behalf of our limited partners.”
“We are pleased to be partnering with EIF on this project,” said Chuck Ahlrichs, President of Northbrook Energy. “We’ve worked with them on several hydroelectric projects and appreciate their level of commitment and trust in us.”