ArcLight Capital buying TransCanada’s New England hydro portfolio

ArcLight Capital Partners, one of the leading renewable energy investors in the United States, said Nov. 1 that its affiliate Great River Hydro has signed a definitive agreement to acquire TransCanada‘s New England hydroelectric power portfolio. 

With 13 facilities on the Connecticut and Deerfield rivers in Vermont, New Hampshire and Massachusetts, TransCanada’s 584 MW renewable power portfolio is the largest conventional hydro system in New England, ArcLight said in a news release.

The portfolio includes the 192-MW Moore facility, the largest conventional hydro station in New England, and 12 other facilities totaling 392 MW. 

The transaction is expected to close in mid-2017, subject to customary regulatory and other approvals.

Great River Hydro anticipates a smooth transition of ownership.  The company has committed to retain all existing operational personnel, plans to assume the recently negotiated union contract, and will continue the Federal Energy Regulatory Commission (FERC) relicensing process currently underway at the Bellows Falls, Wilder and Vernon facilities.

Founded in 2001, Boston-based ArcLight has invested more than $3.1bn of capital in renewable power assets, representing approximately 5,000 MW of generation. 

ArcLight also has over a decade of experience owning and operating hydro facilities in New England.  Since 2006, ArcLight has acquired and operated 10 hydro facilities along the Penobscot, Union and Androscoggin rivers in Maine. 

Great River Hydro will be led by Scott Hall, a long-term portfolio executive of ArcLight with over 27 years of experience managing hydroelectric generating facilities and companies in the Northeast. 

“We have been incredibly impressed by the quality of both the hydroelectric facilities and the operations team,” Hall said.

“We are thrilled to expand our renewable footprint by acquiring these premier hydroelectric assets from TransCanada,” added Dan Revers, Managing Partner and co-Founder of ArcLight. “New England is a key geography for ArcLight, and we look forward to working with local communities and other constituencies across the region.”

TransCanada selling off Northeast U.S. power assets

TransCanada noted in its Nov. 1 earnings report that it is selling off much of its Northeast United States power portfolio.

“On November 1, 2016, we announced that we expect to realize approximately US$3.7 billion from the monetization of our the U.S. Northeast Power business,” TransCanada said.

TransCanada also reported that the ArcLight deal is valued at more than $1bn (U.S.).

“This includes the announced sale of Ravenswood, Ironwood, Ocean State Power and Kibby Wind to Helix Generation, LLC, an affiliate of LS Power Equity Advisors for US$2.2 billion and TC Hydro to Great River Hydro, LLC, an affiliate of ArcLight Capital Partners, LLC for US $1.065 billion, with the remainder attributed to the marketing business which is expected to be realized going forward,” TransCanada said.

http://www.transcanada.com/announcements-article.html?id=2099972&t=

About Wayne Barber 4201 Articles
Wayne Barber, Chief Analyst for the GenerationHub, has been covering power generation, energy and natural resources issues at national publications for more than 20 years. Prior to joining PennWell he was editor of Generation Markets Week at SNL Financial for nine years. He has also worked as a business journalist at both McGraw-Hill and Financial Times Energy. Wayne also worked as a newspaper reporter for several years. During his career has visited nuclear reactors and coal mines as well as coal and natural gas power plants. Wayne can be reached at wayneb@pennwell.com.