Talen Energy agreed to sell three Pennsylvania power plants with a total combined generating capacity of 996 MW for $1.51 billion in gross cash proceeds, subject to customary purchase price adjustments. The 704-MW Ironwood plant is being sold to a subsidiary of TransCanada for a total purchase price of $654 million. The Holtwood and Lake Wallenpaupack hydroelectric projects, with a combined generating capacity of 292 MW, were sold to a subsidiary of Brookfield Renewable Energy Partners L.P. for $860 million.
Charting a Path Forward
The state is diverging from the national trend.
NorthWestern Energy closed on the previously announced $900 million purchase of eleven hydroelectric facilities representing 633 MW of capacity and one storage reservoir from PPL Montana. NorthWestern previously announced the issuance of equity and debt securities to finance the acquisition from PPL Montana.
The AES Corporation entered into an agreement to sell its 49.62% equity interest in AES Entek Elektrik Üretimi A.Ş. (AES Entek), a joint venture with KOÇ HOLDİNG A.Ş. and AYGAZ A.Ş., in Turkey, to its partners. The sale represents 100% of AES' interest in assets in Turkey, consisting of 364 MW of operating natural gas and hydroelectric facilities and its interest in a coal-fired development project, for $125 million in equity proceeds to AES. Subject to customary regulatory approvals, this transaction is expected to close by the first quarter of 2015.
PPL Montana has agreed to sell its hydroelectric facilities to NorthWestern Energy. Montana Public Service Commission voted to prepare an order approving NorthWestern Energy's request to purchase the facilities. The agreement includes PPL Montana's 11 hydroelectric power plants, which have a combined generating capacity of more than 630 MW, as well as the company's Hebgen Lake reservoir. PPL Montana and NorthWestern have secured required approvals from FERC, as well as the necessary clearance from the antitrust enforcement agencies.
The Northern Pass, a proposed transmission line carrying renewable hydroelectric power to New Hampshire and New England, cleared a regulatory milestone by securing 'I.3.9 approval' by ISO New England, the operators of the region's power grid. The I.3.9 process determines whether Northern Pass can reliably interconnect with the New England grid.
Alterra completed an amendment of its PPA for the 62-MW Jimmie Creek run-of-river hydroelectric project. Under the agreement, the Jimmie Creek project will sell 100% of its power to BC Hydro for 40 years commencing in August 2016. Alterra has also agreed to purchase the 49% project stake currently held by an affiliate of General Electric Energy Financial Services. Upon closing of this transaction, Alterra will own 100% of the Jimmie Creek project. All first nations agreements and environmental permits for Jimmie Creek are in place.
Not just ‘all of the above,’ but ‘how much of each?’
Alstom was awarded a contract worth more than $90 million CA for Hydro-Québec’s La Romaine 3 power house, one of four new power houses that make up the 1,550-MW La Romaine hydroelectric complex, located on the north shore of the St. Lawrence River. The scope of the contract includes the supply of two 200-MW vertical Francis turbine-generator units complete with butterfly valves and regulation systems. Alstom will install and commission the equipment at the La Romaine 3 site. This contract was booked during first quarter of fiscal year 2013/2014.