TransCanada Corporation has completed the sale of its interest in its limited partnership organization, TransCanada Power LP to Epcor Utilities for $529 million. TransCanada will realize an after tax gain on the transaction of approximately $200 million.
Following the close of the deal, effective from the start of September, the name of the partnership has changed from TransCanada Power, L.P. to Epcor Power L.P. (the Partnership).
As part of the agreement 100 TransCanada employees, who provided management, operations and maintenance services under contract to the Partnership, have become Epcor employees.
Additionally, four officers from Epcor, Donald Lowry, Brian Vaasjo, Mark Wiltzen, and Douglas Topping, will replace TransCanada officers as directors of Epcor Power L.P.’s General Partner. Mr. Lowry will serve as chairman of the General Partner and Mr. Vaasjo will serve as its president.
Parent company Epcor Utilities owns 30.6% of the Partnership’s outstanding units. Furthermore, the company is the total owner of the General Partner of the Partnership and management and operations agreements governing the ongoing operation of the Partnership’s power generation assets.