Canada-based Emera Inc. (TSX: EMA) announced Nov. 19 the closing of a transaction to purchase three combined-cycle natural gas-fired generating facilities in New England from Capital Power Corp. (TSX: CPX).
“Adding gas generation to our existing portfolio in New England has been a strategic objective for Emera,” said Chris Huskilson, President and CEO of Emera. “We are looking forward to applying our skills, expertise and knowledge of the New England natural gas and electricity markets to these high quality assets”.
The purchase was announced in August and got an approval on Nov. 14 from the Federal Energy Regulatory Commission. The plants add a total 1,050 MW to Emera’s existing generation capacity in northeast North America. The facilities are: Bridgeport Energy (520 MW) in Bridgeport, Conn.; Tiverton Power (265 MW) in Tiverton, R.I.; and Rumford Power (265 MW) in Rumford, Maine. The purchase price was US$541m.
Emera recently received repayment of its US$150m loan to Northeast Wind Partners, which was facilitated by the recent refinancing of that entity’s indebtedness. These funds, together with a newly established one year C$350m non-revolving credit facility and other cash resources on hand, were used to finance the closing. During the first half of 2014, Emera expects to finance the assets with long-term, entity level debt in the range of 50% of the purchase price.
Emera is an energy and services company that invests in electricity generation, transmission and distribution, as well as gas transmission and utility energy services. Emera has investments throughout Northeastern North America, and in four Caribbean countries. Among other things, it is the parent of Nova Scotia Power.