Hydropower partnership formed between PNG, Skookum Power Corp.

April 8, 2010

Source: Pacific Northern Gas Ltd.

PNG announced that it has partnered with Skookum Power Corporation, and is acquiring the 9.8 MW McNair Creek "run of river" hydro-electricity generation facility from Kiewit Hydropower Investors Inc and Renewable Power. The McNair Creek facility, located on the B.C. Sunshine Coast, has operated for more than 5 years. The facility's generation is sold under a long-term contract to BC Hydro.

PNG's 97 percent share of the approximately $17 million acquisition cost will be funded by way of assumption of existing non-recourse debt as well as utilization of PNG's current bank facility. PNG's debt to capitalization will be approximately 51 percent after the transaction. The transaction will be cash flow positive and is expected to be EPS accretive in 2011.

PNG has entered into a development and operating agreement with Skookum Power gaining access to extensive expertise in hydrology, engineering and commercial development to support PNG's new business platform. The principals of Skookum Power are former power company executives with collectively more than 50 years experience in the hydro-electricity and energy sectors.



Did You Like this Article? Get All the Energy Industry News Delivered to Your Inbox

Subscribe to an email newsletter today at no cost and receive the latest news and information.

 Subscribe Now

Whitepapers

Logistics Risk Management in the Transformer Industry

Transformers often are shipped thousands of miles, involving multiple handoffs,and more than a do...

Secrets of Barco UniSee Mount Revealed

Last year Barco introduced UniSee, a revolutionary large-scale visualization platform designed to...

The Time is Right for Optimum Reliability: Capital-Intensive Industries and Asset Performance Management

Imagine a plant that is no longer at risk of a random shutdown. Imagine not worrying about losing...

Going Digital: The New Normal in Oil & Gas

In this whitepaper you will learn how Keystone Engineering, ONGC, and Saipem are using software t...

Latest PennEnergy Jobs

PennEnergy Oil & Gas Jobs