The assets to be acquired are core operational merchant hydroelectric plants situated primarily on the Connecticut River in Massachusetts and the Housatonic River in Connecticut.
They include the 1,168MW Northfield Mountain pumped-storage facility as well as 12 conventional hydroelectric plants, the three largest of which represent a combined generation capacity of 134MW.
PSP Investments aims to maximize the potential benefits of integrating its ownership in the assets with the operational expertise of its existing hydroelectric power platform, H2O Power.
H2O Power, which is majority-owned by PSP Investments, currently owns and operates 10 hydroelectric generating stations located in Canada and the US, representing 170MW of power generation capacity.
PSP Investments senior vice president, global head of private investments, Guthrie Stewart said: "PSP Investments is extremely pleased with the acquisition of these significant hydroelectric facilities which form an important component of the Eastern U.S. energy market."
"The purchased assets are an excellent fit with PSP Investments’ long-term investment horizon and its strategy to leverage industry-specialized platforms, such as H2O Power."
The transaction is subject to customary closing conditions, including regulatory approvals.
