TransCanada said late Monday that it has entered into an agreement to buy the Ravenswood generating station in New York City for US$2.8 billion.
Hal Kvisle, CEO, TransCanada, said the purchase of the 2,480-megawatt gas-and-oil-fired complex in Queens from National Grid Plc "represents a significant expansion of our energy business into one of the most important power markets in North America."
National Grid is divesting the plant, as part of its takeover of New York utility company KeySpan Corp.
The purchase, which National Grid estimated would total $2.9 billion, will reduce TransCanada earnings for the first two years but boost profit thereafter. The deal is expected to be completed this summer.
Generating capacity
Ravenswood's 2,480 megawatts will expand TransCanada's total generating capacity interests in Canada and the U.S. to 10,200 megawatts, along with its 59,000-kilometre natural gas and oil pipeline network the Calgary-based pipeline and power company said.
"It fits strongly with TransCanada's strategy to grow our power business in markets where our assets, expertise and financial strength enable us to be a strong competitor and reliable energy provider," Mr. Kvisle continued.
April 01, 2008