Brookfield Renewable Energy Partners L.P. announced in mid May that, with its institutional partners, it has entered into an agreement with a wholly-owned subsidiary of Exelon Corporation, to acquire the remaining 67% interest it did not already own in the 417 MW Safe Harbor hydroelectric facility on the Susquehanna River in Pennsylvania.
Richard Legault, President and CEO of Brookfield Renewable, said:
"We are pleased to be acquiring the remaining interest in Safe Harbor. This investment is consistent with our strategy of owning and operating high-quality, renewable assets in power markets with attractive long-term fundamentals."
Safe Harbor generates an average of 1,100 GWh annually and possesses storage capabilities that support daily operations and dispatch during peaking hours. It is one of the largest conventional hydroelectric facilities in Pennsylvania-New Jersey-Maryland Interconnection (PJM), a market which offers multiple revenue streams including energy, capacity, ancillaries and renewable energy credits.
The total purchase price for the transaction is approximately $613 million subject to customary working capital adjustments, and will be funded through available liquidity and capital from Brookfield Renewable and its institutional partners. It is expected that a portion of the purchase price will be funded with non-recourse, fixed-rate financing.
The transaction, which is subject to customary closing conditions and regulatory approvals, is expected to be completed in the third quarter of 2014.
Brookfield Renewable Energy Partners operates one of the largest publicly-traded, pure-play renewable power platforms globally. Its portfolio is primarily hydroelectric and totals over 6,000 megawatts of installed capacity. Diversified across 71 river systems and 12 power markets in the United States, Canada and Brazil, the portfolio's output is sold predominantly under long-term contracts and generates enough electricity from renewable resources to power more than three million homes on average each year.