UPDATE-AltaGas inks 60-year power purchase pact with BC Hydro

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Fri May 28, 2010 5:18pm EDT

* Inks deal for AltaGas' Forrest Kerr project

* Says project expected to start power production by 2014

* Expects to provide electricity to 70,000 homes

May 28 (Reuters) - Energy infrastructure firm AltaGas Income Trust ALA_u.TO signed a 60-year electricity purchase agreement with British Columbia's provincially owned electrical utility BC Hydro for AltaGas' Forrest Kerr project.

The 195-megawatt hydro-electricity generation project, which is estimated to cost about C$700 million and was issued an environment assessment certificate in March, is expected to generate electricity by 2014.

The project is likely to provide electricity for about 70,000 homes in British Columbia, the company said in a statement.

AltaGas also said that the site activities are underway and it expects construction on the site to start immediately.

Units of Calgary, Alberta-based AltaGas closed at C$16.99 Friday on the Toronto Stock Exchange. (Reporting by Aftab Ahmed in Bangalore; Editing by Maju Samuel) (aftab.ahmed@thomsonreuters.com; within U.S. +1 646 223 8780; outside U.S. +91 80 4135 5800; Reuters Messaging: aftab.ahmed.reuters.com@reuters.net))

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