WESTBOROUGH, Mass., March 20, 2002 — National Grid USA Wednesday announced that it has agreed to sell its 50% ownership interest in Canadian Niagara Power Company, Limited (CNP Limited) to Fortis Inc., for $49 million (Canadian), including $35 million cash and $14 million of assumed debt.
“This agreement reaffirms National Grid’s corporate strategy to be in the business of transmitting and distributing energy,” said Rick Sergel, National Grid USA president and chief executive officer. “We are focused on leveraging our expertise in energy delivery for the benefit of customers.”
CNP Limited is an Ontario-based integrated electric utility that distributes electricity to approximately 15,000 customers in the Town of Fort Erie, and generates approximately 75 megawatts of electricity that is sold to the customers of Fort Erie with excess capacity sold into the wholesale energy markets in the U.S.
Niagara Mohawk Holdings, Inc. of Syracuse, N.Y., previously held the 50% ownership interest in CNP Limited. On January 31, 2002, Niagara Mohawk merged with National Grid, and its ownership interest in CNP Limited was transferred to National Grid USA.
Fortis Inc., a diversified electric utility company based in Newfoundland and Labrador, already owns the remaining 50% of CNP Limited.
The transaction must be approved by the Ontario Energy Board and receive clearance under Canada’s Competition Act. No U.S. approvals are required.
National Grid USA’s transmission and distribution network serves approximately 3.2 million customers in Massachusetts, Rhode Island, New Hampshire and upstate New York. The company also operates a natural gas distribution network, serving more than 500,000 upstate New York customers. National Grid USA is a subsidiary of National Grid Group plc (LSE and NYSE:NGG), an international company based in London that builds, owns and operates electricity, natural gas, and telecommunication networks.