March 25 Canadian energy infrastructure company
AltaGas Ltd said it will buy U.S. power company Blythe
Energy LLC for $515 million to take control of a power plant
that runs on cheaper and cleaner natural gas.
AltaGas, which is involved in energy services, power
generation and natural gas extraction and transmission, said the
acquisition will help it meet increasing demand for power
generated from cleaner sources.
Blythe owns Blythe Energy Center, a 507 megawatt natural
gas-fired plant and a related 230 kilovolt electric transmission
line in Southern California.
Calgary, Alberta-based AltaGas, which has operations in the
United States and Canada, said the acquisition is likely to add
to its earnings and cash flow per share in 2014. The deal is
expected to close in the second quarter.
The demand for cleaner energy sources, including natural
gas, continues to be strong across North America and is a key
driver for the potential growth of the Blythe Energy Center, the
The Center is contracted under a Power Purchase Agreement
through to July 2020 with Southern California Edison.
"... the facility is well positioned to access two premium
power markets in California and Arizona in the future," AltaGas
Chief Executive David Cornhill said.