US-based Northeast Utilities has sold its competitive generation assets in the states of Connecticut and Massachusetts - including several hydro projects - to private equity firm Energy Capital Partners for US$1.34B.

The sale includes 15 generating plants at 14 sites with a total output of 1442MW, with the largest being the 1080MW Northfield Mountain pumped storage facility located in Northfield, Massachusetts.

Proceeds from the sale – which is expected to close by the end of 2006 – will be used by Northeast Utilities to invest in its regulated businesses, retire debt and pay taxes.

The sale is subject to certain regulatory approvals. J.P. Morgan Securities Inc acted as financial advisor to the company on the transaction.