Brookfield Renewable Energy Partners LP (TSX: BEP.UN) (NYSE: BEP) said March 28 that it and its institutional partners have completed the previously announced acquisition of a 33% economic interest in the 417-MW Safe Harbor hydroelectric facility from a private seller.
Brookfield Renewable will assume approximately 40% of the investment, with its institutional partners accounting for the remainder.
Safe Harbor is located on the Susquehanna River in Pennsylvania and generates an average of 1,100 GWh annually. The facility possesses storage capabilities supporting daily peaking and is one of the largest conventional hydroelectric facilities in the PJM Interconnection market.
The Federal Energy Regulatory Commission, finding no market power concerns, on March 21 had approved this transaction. On Feb. 6, LSP Safe Harbor Holdings LLC, Safe Harbor Water Power Corp. and BIF II US Gen AcquireCo LLC (called “AcquireCo” for short) applied for this approval. Under the transaction AcquireCo, or another entity controlled by Brookfield, would indirectly acquire 100% of the equity interests in LSP Safe Harbor from various LS Power Associates entities.
Safe Harbor is an exempt wholesale generator (EWG) that owns and operates the Safe Harbor Project, a 417.5-MW hydroelectric facility located in Conestoga, Pa., which is within the 5004/5005 and AP South sub-markets of the PJM market. Its FERC-issued license does not expire until April 2030.
Brookfield operates one of the largest publicly-traded, pure-play renewable power platforms globally. Its portfolio is primarily hydroelectric and totals approximately 6,000 megawatts of installed capacity. Diversified across 70 river systems and 12 power markets in the United States, Canada and Brazil, the portfolio’s output is sold predominantly under long-term contracts and generates enough electricity from renewable resources to power more than three million homes on average each year.