HALIFAX, Nova Scotia--(BUSINESS WIRE)--Emera Inc. (TSX:EMA) has entered into an agreement to purchase three combined-cycle gas-fired electricity generating facilities in New England from Capital Power Corporation (TSX:CPX). The transaction will add 1,050 megawatts to Emera’s generation capacity in the northeast, and represents a total investment of $541 million.
“Emera is making this investment for the long term”
The facilities, all of which are of recent vintage, are Bridgeport Energy (520 MW) in Bridgeport, Connecticut; Tiverton Power (265 MW) in Tiverton, Rhode Island; and Rumford Power (265 MW) in Rumford, Maine.
”These are quality assets, in a region Emera knows very well, having operated in the New England gas and electricity markets for more than a decade,” said Chris Huskilson, President and Chief Executive Officer of Emera Inc. “Adding gas generation to our existing generation portfolio of wind and hydro assets in the northeast has been a strategic objective for Emera. We are pleased to have acquired these particular assets, which are highly efficient, well situated, and low emitting, and which we believe can deliver value to our business.”
Emera plans to finance the purchase with cash and short term credit resources on closing; and ultimately expects to finance the acquisition with a combination of debt and equity consistent with maintaining its strong financial position and existing credit ratings. The transaction is subject to certain regulatory approvals and is expected to close by the end of 2013.
“Emera is making this investment for the long term,” said Mr. Huskilson. “The earnings profile is modest in the early years, but we have acquired these facilities at a fair price and we expect their value will increase over time, as we optimize within our portfolio, as older, less efficient assets in the region are retired, and more intermittent renewable generation is added to the system.”
Forward Looking Information
This news release contains forward looking information. Actual future results may differ materially. Additional information related to Emera, including the company's Annual Information Form, can be found on SEDAR at www.sedar.com or on EDGAR at www.sec.gov.
Emera Inc. is an energy and services company with $8.0 billion in assets and 2012 revenues of $2.1 billion. The company invests in electricity generation, transmission and distribution, as well as gas transmission and utility energy services. Emera's strategy is focused on the transformation of the electricity industry to cleaner generation and the delivery of that clean energy to market. Emera has investments throughout Northeastern North America, and in three Caribbean countries. More than 80% of the company's earnings come from regulated investments. Emera common and preferred shares are listed on the Toronto Stock Exchange and trade respectively under the symbol EMA, EMA.PR.A., EMA.PR.C., and EMA.PR.E. Additional information can be accessed at www.emera.com or at www.sedar.com.