UK`s National Grid sells New York`s Ravenswood generating station to TransCanada for US$2.9bn
National Grid plc (“National Grid”) has signed an agreement to sell its 2,480 megawatt Ravenswood Generating Station in New York City to TransCanada Corporation for a total cash consideration of US$2.9 billion, payable upon completion of the sale.
“We are delighted with the outcome of this process. Not only have we quickly delivered on our obligations to the New York Public Service Commission to sell Ravenswood but we have also delivered value for our shareholders” said Steve Holliday, Chief Executive of National Grid. “I am pleased that we have reached agreement with TransCanada, which has an excellent track record in operating power plants; I’m sure they will do a great job managing Ravenswood in the future.”
The sale is subject to regulatory approvals from the Federal Energy Regulatory Commission, the New York Public Service Commission and clearance under US anti-trust and foreign investment laws. Subject to these approvals, National Grid expects to complete the sale by summer 2008.
Proceeds from the sale of Ravenswood will be used for general corporate purposes.
Ravenswood Generating Station, a 2,480 megawatt facility in Queens, N.Y. is primarily fueled by natural gas, and provides over 20 percent of New York City’s electricity supply. Ravenswood was acquired as part of National Grid’s acquisition of KeySpan in August 2007. Divestiture of Ravenswood was a condition of the New York Public Service Commission order approving the acquisition of KeySpan by National Grid and as a consequence it was classified by National Grid within discontinued operations since the acquisition of KeySpan.
Merrill Lynch & Co. Inc. is financial advisor to National Grid in the transaction.
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