Brookfield Renewable Energy Partners buys up hydropower assets

Brookfield Renewable Energy Partners L.P agreed, in two separate transactions, to buy a 70 MW hydroelectric portfolio in Maine, and the remaining 50 percent interest in its 30 MW Malacha Hydro facility in California.

The Maine portfolio being acquired from affiliates of ArcLight Capital Partners, LLC, consists of nine hydroelectric facilities on the Penobscot, Androscoggin and Union rivers, and provides Brookfield Renewable with a strong fit with its existing 270 MW of operating capacity on the same river systems.

The facilities have average expected power generation capacity of about 375,000 MWh annually and about 60 percent of the portfolio’s output is currently sold into the New England wholesale power market, with the remainder sold under long-term contract to local utilities until 2024 and 2028. The portfolio benefits from long-term FERC licenses, in most cases expiring after 2029.

Brookfield Renewable and its partners have also agreed to acquire the remaining 50 percent interest in the 30 MW Malacha Hydro peaking facility on the Pit River in Lassen County, California. Brookfield Renewable acquired its initial operating interest in December 2010. All of Malacha Hydro’s output is sold under a fixed-price contract to Pacific Gas and Electric Company until 2028 with a natural gas indexed energy price component starting in 2017.

Both transactions will be pursued with Brookfield Renewable’s institutional partners.

The acquisitions will be funded through available liquidity and available capital from Brookfield Renewable’s institutional partners. It is expected that a portion of the purchase price will be funded with non-recourse, fixed-rate debt. The transactions are subject to regulatory approvals and other customary closing conditions and are expected to close before the end of 2013.

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