BayCorp holdings announced last week that it has completed a US$2.2M acquisition of Benton Falls Associates, a limited partnership which owns a 4.3MW hydroelectric plant in Benton, Maine, US.
Baycorp will immediately assume operating responsibility for Benton Falls. The output from Benton Falls is sold to Central Maine Power Corporation (CMP) under a power purchase agreement (PPA) that expires in December 2007.
The rates under the PPA are indexed to CMP’s standard rates for energy and capacity purchases established annually by the Maine Public Utilities Commission. Upon expiration of the PPA, the output of Benton Falls will be used as a physical hedge for a portion of BayCorp’s supply obligations under its 9MW supply contract with Until Power Corp, that runs to October 2010.