TransCanada Corp. completed the divestiture of all of its remaining merchant generation power assets totaling 4,000 MW in the U.S. Northeast to an LS Power Equity Advisors LLC affiliate in a deal valued at about $2.1 billion, including a price adjustment prompted by an unplanned outage at the Ravenswood facility.
The company will use the sale proceeds to fully retire the remaining acquisition bridge facilities that partially funded its purchase of Columbia Pipeline Group Inc.
Specifically, Helix Generation LLC acquired TransCanada's stakes in the Ravenswood 2,246-MW natural gas- and oil-fired generation facility in New York City; Ravenswood Services Corp., which provides fuel and related services to the Ravenswood plant; and a 95% stake in Unit 40 Sublessor LLC.
Helix also purchased other related transmission assets, including the 660-MW Ironwood natural gas-fired generation facility near Lebanon, Pa.; the 132-MW Kibby Mountain Wind Project in Kibby and Skinner townships, Maine; and the 454-MW Ocean State Power and Ocean State Power II natural gas-fired generation plants in Providence County, R.I.
FERC approved the transaction on March 31. (FERC Docket EC17-38)
The second sale was for the Northeast hydroelectric assets contained in TC Hydro for $1.065 billion to ArcLight Capital Partners LLC affiliate Great River Hydro LLC.
In a June 5 statement, TransCanada announced its intention to gradually retire its TransCanada Power Marketing Ltd. operations. In total, the company expects to realize approximately $3.7 billion in proceeds from the sale of its U.S. Northeast merchant power business.