Brookfield Renewable to acquire 85MW hydroelectric plants in US

Canadian renewable energy company Brookfield Renewable Energy Partners will acquire a total of 85MW hydroelectric power plants in the states of Maine and California, US.

The first transaction includes the purchase of 70MW of nine hydroelectric facilities on the Penobscot, Androscoggin and Union rivers from ArcLight Capital Partners in New England, Maine.

The Maine portfolio, which has a total annual output of 375,000 MWh, sells 60% of its output into the New England wholesale power market, while the 40% power is sold to local utilities under long-term contract until 2024 and 2028.

The portfolio has long-term Federal Energy Regulatory Commission licenses, most of which are expected to expire after 2029.

Brookfield Renewable will also acquire the remaining stake of the 30MW Malacha Hydro hydroelectric power plant located on the Pit River in Lassen County, California.

The company bought the first 50% stake in December 2010 and sells output to Pacific Gas and Electric under a fixed-price contract until 2028 with a natural gas indexed energy price component starting in 2017.

Both acquisitions will be funded through available liquidity and available capital from its institutional partners.

Brookfield Renewable president and CEO Richard Legault said that the company continues to add high quality assets in this low-price environment, which provides an attractive combination of stable, contracted revenues and strong prospects for long-term cash flow growth.

"Moreover, we are pleased to continue to invest in Maine and California, both important markets for us," Legault added.

"Our knowledge of hydro and our operating expertise in these markets give us confidence in the long-term value creation potential of this portfolio."