As part of this effort, the firm has agreed to divest its 2,480MW Ravenswood generation facility in New York; 778MW Ironwood combined-cycle facility in Pennsylvania; 560MW Ocean State Power generation facility and 132MW Kibby Wind project in Maine to LS Power Equity Advisors for $2.2bn.
LS Power CEO Paul Segal said: "Each of these assets serves a distinct and crucial role to meet the demand needs in their respective Northeast markets.”
The Canadian company also signed an agreement with an affiliate of ArcLight Capital Partners to sell its New England hydroelectric power portfolio for $1.065bn.
The assets considered for acquisition by ArcLight include the 192MW Moore facility in New England and 12 other facilities with combined capacity of 392MW.
Subject to certain regulatory and other approvals, the two transactions are planned to be completed in the first half of 2017.
Proceeds from the two transactions will be used by TransCanada to repay a portion of the $6.9bn loan taken to finance the Columbia Pipeline Group (Columbia) acquisition deal signed earlier this year.
TransCanada president and CEO Russ Girling said: "The sale of our merchant US Northeast Power business to fund a portion of our acquisition of Columbia will further enhance the stability and predictability of our earnings and cash flow streams and support a strong and growing dividend.”
Additionally, TransCanada agreed to purchase all shares outstanding of Columbia Pipeline Partners for $915m.
Girling added: "The decision to acquire Columbia Pipeline Partners completes our review of strategic alternatives for our master limited partnership (MLP) holdings following the Columbia transaction.”
Image: The TransCanada’s Kibby wind project in US. Photo: courtesy of Bubblecuffer/Wikipedia.
