Eight hydropower stations will change owners in Maine, US by mid 1999, in a deal between Bangor Hydro-Electric and a subsidiary of PP&L Resources called PP&L Global.
Bangor was required under electricity restructuring legislation enacted in Maine in 1997 to divest itself of all its generating assets before 1 March 2000. The law is intended to create an open market in which users can chose their electricity provider.
In the deal, PP&L Global will purchase 100% of Bangor’s hydro electric assets — eight power stations ranging in capacity from 2MW to 13MW located along the Penobscot and Union rivers — along with Bangor’s 8.33% interest in the Wyman 2 oil-fired plant. The deal will cost PP&L US$89M, split equally between debt and equity financing. Subject to the approval of regulatory bodies, the deal is expected to be closed by mid 1999.
Talking about the purchase, Robert D Fagan, president of PP&L Global, said, ‘These hydro facilities are of strategic value to PP&L Global. The assets represent some of the last hydro facilities available in the New England Power Pool. Hydro facilities provide a long-term opportunity due to their stable cost characteristics versus other generating assets in the Northeast. Furthermore, hydro assets meet the ‘green power’ criteria established by the Maine legislature, which mandates an environmentally compatible component to all retail sales’.