Veresen Inc., based in Calgary, Alberta, Canada, announced today it has a potential buyer to purchase its 33-MW Glen Park hydroelectric plant in upstate New York for US$61 million.
The company said the transaction is expected to close by the end of September, pending approval by the U.S. Federal Energy Regulatory Commission. Veresen’s announcement did not name the project’s purchaser.
"The sale of Glen Park reflects our continuing efforts to optimize our portfolio," said Don Althoff, Veresen president and chief executive officer. "This divestiture provides additional flexibility beyond our expected [dividend reinvestment plan] proceeds to fund our contracted growth program."
Veresen operates energy-related assets across North America, including pipelines, processing plants and a portfolio of investments in Canadian power generation assets.
Glen Park hydroelectric plant is a run-of-river facility that began commercial operations in 1986. It is located on the Black River in Glen Park, N.Y., downriver from the city of Watertown, just south of Lake Ontario.
The facility operates under a 50-year license issued by FERC, which expires in 2032.
Veresen Inc., formerly Fort Chicago Energy Partners LP (Fort Chicago), converted from a limited partnership to a corporation under its current name on Jan. 1, 2011.
In 2010, Fort Chicago purchased the facility’s owner, Northbrook New York LLC, for US$80.1 million.