Under the agreement, Edison will transfer seven hydroelectric power plants (Lasa, Brunico, Marlengo, Prati di Vizze, Ponte Gardena, Curon and Premesa, which operate by virtue of concessions expiring between 2011 and 2020) with a combined installed capacity of about 245MW and an average annual potential output of about 1000GWh to a newly established corporation.
SEL will in turn contribute a 30% stake in Goege Energia Srl and Centrale Elettrica Winnebach Società Consortile Arl – which hold concessions to operate the power plants currently under construction on the Rio Malga Ghega and Rio Vena. It will also include a 30% interest in a concession to divert water flows for hydroelectric production in the Rio Vizze, the application for which has already been filed and is owned by SEL together with an application for the award of the Lasa concession.
The agreement sees 60% of the new company’s share capital sold to SEL for Euro 177M, with Edison owning the remaining 40%. Edison will then manage the dispatching of all of the conveyed power plants. In addition, it will buy all of the energy produced by the Ponte Gardena, Brunico, Prati di Vizze and Curon power plants until their concessions expire (December 31, 2005), as well as its pro rata share of the energy produced by the Marlengo, Lasa and Premesa power plants.
Announcing the deal, SEL and Edison said they would also consider the possibility of establishing a collaborative relationship to trade electric capacity and energy over the ‘Wiltener-Leitung’ and ‘Resia’ transnational merchant lines that SEL is developing between Italy and Austria.
Provided the authorities authorise the transfer of the concessions and renewal applications to the new company, the transaction is expected to close by 30 September 2008.
The new company will be managed by a Board of Directors comprised of five members, three of whom will be designated by SEL. Edison will designate the remaining Directors.
The agreement will be in force for five years. SEL has an indirect interest in Edison’s share capital because it owns a 10% interest in Delmi, which, in turn, owns 50% of Transalpina di Energia, a company that has a direct controlling interest in Edison.
