The company will acquire the project’s owner, Northbrook New York, through an indirect wholly owned subsidiary for approximately US$80M. The acquisition is expected to be financed from existing bank credit facilities, and is scheduled to close in the first quarter of 2010.
The Northbrook facility commenced commercial operations in 1986 and operates as a run-of-river facility. The project operates under a 50-year license issued by FERC, which expires in 2032. The Northbrook facility is operated by an experienced third party contract operator. In the past, power produced by the facility has been sold under two-year contracts, however Fort Chicago intends to explore opportunities for a longer-term sales arrangement.