By March 28, 2016 Read More →

TransCanada to sell dams in Columbia Pipeline Group deal

TransCanada looking to sell multiple Northeast US assets

TransCanada

TransCanada is looking to sell a number of northeastern US power generation assets.  Columbia Pipeline Group photo.

WEST LEBANON, N.H. _ TransCanada is looking to sell its New England power generation business, including hydroelectric dams on the Connecticut River, in an effort to finance the recently announced purchase of the Columbia Pipeline Group.

On March 17, the Calgary-based company reported it had purchased the Columbia Pipeline Group of Houston for nearly $10.2 billion.  Once complete, the deal would make TransCanada one of North America’s largest regulated natural gas transmission businesses.

In order to finance the sale, the company is looking to sell some of its merchant power assets.  Don Marchand, TransCanada’s chief financial officer, says once the sales are complete, the majority of the company’s power generation assets will be removed from its portfolio.

In 2005, TransCanada bought 13 hydroelectric dams on the Connecticut and Deerfield rivers from USGen New England after the company went bankrupt.  In October of 2015, the company purchased the Ironwood natural gas-fired power plant for $657 million.

According to The Valley News, Ironwood along with the Wilder, Bellows Falls and Vernon, Vermont, dams are assets the company is looking to sell. TransCanada also plans to sell its Kibby wind development in Maine; its generation plants in Rhode Island, Pennsylvania and New York and its power marketing business.

The company is also looking to divest a stake in its Mexico gas business.

The Canadian Press

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