Emera Finds Buyer For Three New England Gas-Fired Power Plants
November 26,2018
Emera Inc. (TSX:EMA) has agreed to sell its three natural gas-fired generation facilities in New England, known as Bridgeport Energy, Tiverton Power and Rumford Power, to an affiliate of The Carlyle Group for US$590 million (C$780 million).
Together, the facilities have the capacity to generate approximately 1,100 MW.
“This transaction, part of the three-year funding plan we introduced during our third quarter earnings results, increases Emera’s financing flexibility to capitalize on our regulated growth opportunities today and in the future,” said Scott Balfour, President & CEO of Emera.
Proceeds from the sale will be used to reduce Emera corporate level debt and support Emera’s capital investment opportunities within its regulated utility businesses
Matt O’Connor, Carlyle Group Managing Director and Head of Carlyle Power Partners, said, “Through this acquisition, Carlyle Power Partners will increase its generation capacity in the attractive New England market, making us one of the largest owners of power generation facilities in the region. We look forward to leveraging our existing market knowledge to create additional value for Bridgeport Energy, Tiverton Power and Rumford Power, building on their already strong track records of operational excellence.”
Cogentrix, The Carlyle Group’s management platform in the power generation space, will assume asset management, operations and maintenance and energy management responsibilities for the portfolio. Cogentrix currently manages Carlyle Power Partners’ fleet of power plants in the Northeast U.S. totaling approximately 1,400 MW
The transaction is subject to the regulatory approvals of the United States Federal Energy Regulatory Commission, and under the provisions of the Hart-Scott-Rodino Antitrust Act, and is expected to close in first quarter 2019.