Brookfield Power announced Aug. 28 it agreed to acquire the two-plant 109-MW Hawks Nest-Glen Ferris hydroelectric project in West Virginia from Alloy Power LLC.
Brookfield said it also entered into an agreement to sell power from the U.S. project (No. 2512) to West Virginia Alloy LLC for a ferro alloy smelter under a 15-year contract. Brookfield said it will manage power consumption at West Virginia Alloy’s smelter by optimizing the hydropower facilities and the smelter’s thermal generating facilities.
Subject to the approval of regulatory agencies, the deal is expected to close by the end of 2006. Financial details were not released, as they are subject to confidentiality agreements, Brookfield said.
Hawks Nest and Glen Ferris are located on the New and Kanawha rivers. Brookfield said the plants can be expected annually to produce an average of 526 gigawatt-hours. The nameplate capacity of Hawks Nest is about 102 MW, and the nameplate capacity of Glen Ferris is 5.45 MW. The project’s total authorized installed capacity, as determined by the Federal Energy Regulatory Commission, is 109 MW.
Glen Ferris has not generated power since 2003, due to repair and maintenance problems. In January, Elkem Metals Co.-Alloy L.P., the previous owner, indicated it would evaluate the feasibility of re-powering, repairing, or decommissioning the plant. Alloy Power LLC acquired the project from Elkem earlier this year.
Brookfield’s announcement did not disclose the company’s plans for the Glen Ferris development, or how it intends to address spalling and deterioration on the downstream face of the concrete spillway and gate piers at Hawks Nest. However, a company spokesman, Grace Pollock, said Brookfield intends to return Glen Ferris to operation. Details and the schedule for that work are not yet available, she said.
Brookfield Power, the power generation unit of asset manager Brookfield Asset Management Inc., is a developer and operator of hydroelectric facilities. Its portfolio includes nearly 3,500 MW of capacity and includes 137 hydroelectric stations on 48 river systems, and two co-generation facilities.