LS Power to acquire 334-MW US hydro portfolio from Hull Street Energy

LS Power Group entered into an agreement to acquire 42 run-of-river hydroelectric facilities totaling 334 MW across 11 U.S. states from Hull Street Energy LLC for an undisclosed amount.

According to S&P Global Market Intelligence data, the plants are all small; the largest is 24 MW and several are smaller than 1 MW.

Of the total, LS Power said 152 MW are located in the ISO New England market, 86 MW in the PJM Interconnection LLC and 48 MW in the New York ISO, with the remaining facilities located in the California ISO, SERC Reliability Corp and Western Electricity Coordinating Council regions.

The deal is expected to close in the first quarter of 2023, subject to the satisfaction of certain closing conditions and regulatory approvals.

"The hydro projects we are acquiring are located in states and markets with attractive regulatory environments supportive of energy transition investments, which we anticipate will grow over time," LS Power Generation President Nathan Hanson said in the news release. "Policies in New York and Massachusetts already promote the use of small hydro projects to meet renewable portfolio standards, and we expect additional states will follow as energy transition tailwinds continue to grow."

On Nov. 2, LS Power applied to the Federal Energy Regulatory Commission to acquire the 80-MW Gauley River Hydro (Summersville) plant in Nicholas County, W. Va. The entity that operates the Summersville plant, Gauley River Power Partners LLC, is indirectly owned by affiliates of Hull Street. (EC23-22)

Milbank LLP represented LS Power as legal counsel, while BMO Capital Markets Corp. and Scotiabank served as financial advisers.

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