Under the agreement, Algonquin has agreed to acquire, through the purchase of shares and assets, three hydroelectric generating stations with a total capacity of 36.8MW, including the 34.5MW Tinker hydroelectric station located on the Aroostook River near the Town of Perth-Andover, New Brunswick. In addition, the company will acquire five legacy thermal generating stations and certain regulated NB ISO transmission lines located in proximity to the generating facilities.
The hydroelectric projects are interconnected to access the northeastern electricity markets of Northern Maine, New Brunswick, and New England. Historically, the primary market for the energy and capacity produced by the plants has been New Brunswick and Northern Maine and the projects are under firm energy and capacity sale contracts continuing through February 2011, with several future contract opportunities available beyond the existing contract expiries.
The deal is subject to certain conditions, including regulatory approval, and is anticipated to occur within approximately 60 days. The purchase price was not disclosed.
