UK-based utility operator National Grid has signed an agreement to sell its 2,480MW Ravenswood generating station in New York City to TransCanada for a total cash consideration of $2.9 billion, payable upon completion of the sale.
The sale is subject to regulatory approvals from the Federal Energy Regulatory Commission, the New York Public Service Commission and clearance under US anti-trust and foreign investment laws. Subject to these approvals, National Grid expects to complete the sale by summer 2008.
The Ravenswood generating station is primarily fueled by natural gas, and provides over 20% of New York City’s electricity supply. Ravenswood was acquired as part of National Grid’s acquisition of KeySpan in August 2007.
Divestiture of Ravenswood was a condition set in the New York Public Service Commission order approving the acquisition of KeySpan by National Grid.
Steve Holliday, CEO of National Grid, said: We are delighted with the outcome of this process. Not only have we quickly delivered on our obligations to the New York Public Service Commission to sell Ravenswood but we have also delivered value for our shareholders.