Emera to sell its stake in Northeast Wind to partner First Wind Holdings

Canadian utility holding company Emera Inc. (TSX: EMA) said Nov. 17 that it will sell its 49% interest in Northeast Wind Partners II LLC to its 51% partner, First Wind Holdings LLC, for US$223.3m.

Northeast Wind owns and operates a 419-MW portfolio of wind generating assets located in the Northeast United States. Emera acquired its interest in Northeast Wind in 2012. Emera’s sale is part of a larger deal which will see 100% of First Wind sold to a third party, and is conditional on that transaction closing, Emera noted. Both transactions are targeted to close in the first quarter of 2015, subject to regulatory approvals.

Emera’s current carrying value of its 49% interest is US$201.6m. The company expects to record a gain on the sale at closing, which will be determined based on the carrying value at that date.

“Emera’s strategy continues to be focused on delivering more clean energy to markets including northeast North America,” said Chris Huskilson, President and CEO of Emera Inc. “This transaction is essentially an unwinding of our original transaction with First Wind as they pursue a new direction and we seek to redeploy our capital in higher value assets and opportunities in other clean energy infrastructure investments, including electricity transmission and natural gas electricity generation in the northeast.”

“Our joint venture with Emera has been a fruitful partnership that has moved investment and new clean energy projects forward in the Northeast – in Maine in particular,” said First Wind CEO Paul Gaynor. “This is a positive move for all of the parties involved. We appreciate and applaud Emera’s efforts to deliver more clean energy to its customers and thank them for their partnership.”

Emera  is a geographically diverse energy and services company headquartered in Halifax, Nova Scotia. It 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.

About Barry Cassell 20414 Articles
Barry Cassell is Chief Analyst for GenerationHub covering coal and emission controls issues, projects and policy. He has covered the coal and power generation industry for more than 24 years, beginning in November 2011 at GenerationHub and prior to that as editor of SNL Energy’s Coal Report. He was formerly with Coal Outlook for 15 years as the publication’s editor and contributing writer, and prior to that he was editor of Coal & Synfuels Technology and associate editor of The Energy Report. He has a bachelor’s degree from Central Michigan University.