Consolidated Edison Development announced it has agreed to sell power plants totaling 1,706 MW, including five small hydroelectric plants in Massachusetts, for $1.477 billion.
North American Energy Alliance LLC, a company jointly owned and controlled by AllCapital (US) LLC and Industry Funds Management Pty Ltd. (IFM), said Dec. 10 it plans to pay cash for the purchase. The transaction is subject to federal and state regulatory approvals and other closing conditions.
Consolidated Edison Development, a subsidiary of utility Consolidated Edison Inc., said the hydropower plants involved in the sale total more than 17 MW. They are 1.464-MW Dwight (No. 10675); 3.58-MW Gardners Falls (No. 2334); 3.7-MW Indian Orchard (No. 10678); 3.9-MW Putts Bridge (No. 10677); and 4.5-MW Red Bridge (No. 10676).
All five are part of Consolidated Edison Energy Massachusetts Inc., which includes 185 MW of generating capacity consisting of the hydro facilities, gas-fired combustion turbines, and thermal units, all in western Massachusetts.
The sale is expected to be completed during the first half of 2008, Con Edison said. It estimates the sale will result in a pre-tax gain of about $572 million. Con Edison also said it expects to use cash proceeds of about $667 million to repay debt and to invest in its businesses.
AllCapital is the U.S. subsidiary of Australian fund manager Allco Finance Group. Industry Fund Management is a wholesale investment manager in Australia.