US-based NorthWestern Energy has paid approximately $133 million to acquire a larger share of the Unit 4 coal-fired generation plant in Colstrip from SGE, a subsidiary of GE Capital.
NorthWestern will gain a further 143MW in the Montana plant having acquired a smaller stake in the coal plant earlier this year.
NorthWestern funded the transaction with available liquidity and a newly formed subsidiary, Colstrip Lease Holdings, which is to finalize a $100 million non-recourse loan to support the purchase.
Accretion to earnings is expected to be approximately $0.6 million in 2007, $1.8 million in 2009, $3.6 million in 2010 and $4.8 million thereafter.