Avista Corp. signed an agreement to acquire Alaska Energy and Resources Co. for a purchase price of $170 million, less the assumption of debt and other customary closing adjustment. AERC is the parent company of Alaska Electric Light and Power Co.
When the transaction is complete, AERC will become a unit of Avista. Avista stated in a release the company expects the addition to be slightly negative to earnings in 2014 but result in increased earnings in 2015, according to Power Engineering.
Alaska Electric Light and Power had annual revenues of $42 million and a total rate base of $111 million in 2012. AERC also owns the AJT Mining unit, an inactive mining company holding certain mining properties.