TransCanada Power L.P. on Wednesday confirmed that it has entered into an exclusive arrangement to acquire companies that indirectly own Hydro Investment Corp., which in turn indirectly owns two hydroelectric facilities in British Columbia. The purchase price is C$162 million (including the assumption of debt) and is subject to the usual closing adjustments.

TransCanada Power expects to complete negotiations on the transaction and execute a definitive agreement over the next several days. Closing of the acquisition is subject to the negotiation of a mutually acceptable purchase agreement and the consent of current counterparties.

The facilities being acquired are the Mamquam and Queen Charlotte hydroelectric plants. The Mamquam hydroelectric facility is a two unit, 50 MW, run-of-river plant located on the Mamquam River approximately 50 kilometres north of Vancouver. The plant came into commercial service in November 1996 and is expected to generate approximately 250 GWh of electricity per year.

All the energy from the Mamquam facility is contracted to British Columbia Hydro and Power Authority (BCH) through to 2027. BCH has an option, exercisable in 2021 and every five years thereafter, to either purchase the facility or extend the contract.

The Queen Charlotte station is a three-unit, 6 MW reservoir-based station located on Moresby Island. It went into commercial service in September 1990 and serves the local community of Sandspit and the surrounding area. All the energy from the Queen Charlotte station is contracted to BCH through to 2022.

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