Emera to Purchase Natural Gas Generation Facilities in New England

Emera Inc. has entered into an agreement to purchase three combined-cycle gas-fired electricity generating facilities in New England from Capital Power Corporation.

The transaction will add 1,050 megawatts to Emera's generation capacity in the northeast, and represents a total investment of $541 million.

The facilities, all of which are of recent vintage, are Bridgeport Energy (520 MW) in Bridgeport, Connecticut; Tiverton Power (265 MW) in Tiverton, Rhode Island; and Rumford Power (265 MW) in Rumford, Maine.

"Adding gas generation to our existing generation portfolio of wind and hydro assets in the northeast has been a strategic objective for Emera," said Chris Huskilson, President and Chief Executive Officer of Emera Inc

Emera plans to finance the purchase with cash and short term credit resources on closing; and ultimately expects to finance the acquisition with a combination of debt and equity consistent with maintaining its strong financial position and existing credit ratings. The transaction is subject to certain regulatory approvals and is expected to close by the end of 2013.

"Emera is making this investment for the long term," said Huskilson. "The earnings profile is modest in the early years, but we have acquired these facilities at a fair price and we expect their value will increase over time, as we optimize within our portfolio, as older, less efficient assets in the region are retired, and more intermittent renewable generation is added to the system."