TransCanada Corporation, through its subsidiaries has acquired all the outstanding equity of both KeySpan Ravenswood, LLC and KeySpan Ravenswood Services Corp., the companies which together own, control and operate the 2,480 megawatt (MW) Ravenswood Generating Station (Ravenswood) located in Queens, New York for US$2.8 billion plus closing adjustments.

“This acquisition positions TransCanada as a strong competitor in the New York City power market and considerably strengthens our overall operations in the northeast U.S. area,” said Hal Kvisle, TransCanada’s president and chief executive officer. “We look forward to providing stable, reliable energy to the region for many years to come.”

“Our solid assets, expertise and financial strength allow us to further grow our high quality energy infrastructure business,” adds Kvisle. “However, our biggest advantage is our people and the relationships we have with our stakeholders. We will continue to focus on both as we begin our operations in New York City.”

TransCanada welcomes nearly 200 talented employees into the TransCanada family with the Ravenswood acquisition.

Ravenswood is a gas and oil fired generating facility consisting of multiple units employing steam turbine, combined cycle and combustion turbine technology. Ravenswood is an indispensable component of the New York generation supply with the capacity to serve approximately 21 per cent of the overall peak load in New York City.

The Ravenswood acquisition fits well with TransCanada's strategy to grow its North American pipeline and energy businesses. TransCanada has built a substantial energy portfolio over the past decade and has achieved a significant presence in power generation in selected regions of Canada and the U.S. With this acquisition, TransCanada owns, or has rights or interests in, approximately 10,900 MW of power generation in Canada and the U.S.

Ravenswood is a strategic fit with TransCanada’s energy portfolio and assets in the U.S. Northeast region, including:

Hydroelectric Generation (567 MW) – assets on the Connecticut and Deerfield Rivers in New England Ocean State Power (560 MW) – gas-fired combined-cycle power plant in Rhode Island Kibby Wind Power (132 MW) – wind energy project under pre-construction in northwestern Maine Power marketing and commercial office in Westborough, Massachusetts The acquisition was financed through a combination of recent equity and term debt offerings, funds drawn on a newly established bridge loan facility and cash on hand.

William Taylor, vice-president and general manager, Eastern Power will lead the team responsible for TransCanada’s assets in the U.S. Northeast region, including Ravenswood.

Tags: KeySpan Ravenswood Services Corp., TransCanada Corporation