TransCanada Closes Ravenswood Generating Station Acquisition
CALGARY, ALBERTA--(Marketwire - Aug. 26, 2008) - TransCanada Corporation (TSX:TRP) (NYSE:TRP) (TransCanada) today announced that through its subsidiaries, it 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.
With more than 50 years' experience, TransCanada is a leader in the responsible development and reliable operation of North American energy infrastructure including natural gas pipelines, power generation, gas storage facilities, and projects related to oil pipelines and LNG facilities. TransCanada's network of wholly owned pipelines extends more than 59,000 kilometres (36,500 miles), tapping into virtually all major gas supply basins in North America. TransCanada is one of the continent's largest providers of gas storage and related services with approximately 355 billion cubic feet of storage capacity. A growing independent power producer, TransCanada owns, or has interests in, over 10,900 megawatts of power generation in Canada and the United States. TransCanada's common shares trade on the Toronto and New York stock exchanges under the symbol TRP.
Note: All financial figures are in Canadian dollars unless noted otherwise.
This news release may contain certain information that is forward looking and is subject to important risks and uncertainties. The words "anticipate", "expect", "may", "should", "estimate", "project", "outlook", "forecast" or other similar words are used to identify such forward looking information. All forward-looking statements reflect TransCanada's beliefs and assumptions based on information available at the time the statements were made. Actual results or events may differ from those predicted in these forward-looking statements. Factors which could cause actual results or events to differ materially from current expectations include, among other things, the ability of TransCanada to successfully implement its strategic initiatives and whether such strategic initiatives will yield the expected benefits, the operating performance of the Company's pipeline and energy assets, the availability and price of energy commodities, regulatory processes and decisions, changes in environmental and other laws and regulations, competitive factors in the pipeline and energy industry sectors, construction and completion of capital projects, labour, equipment and material costs, access to capital markets, interest and currency exchange rates, technological developments and the current economic conditions in North America. By its nature, such forward-looking information is subject to various risks and uncertainties, which could cause TransCanada's actual results and experience to differ materially from the anticipated results or expectations expressed. Additional information on these and other factors is available in the reports filed by TransCanada with Canadian securities regulators and with the U.S. Securities and Exchange Commission. Readers are cautioned not to place undue reliance on this forward-looking information, which is given as of the date it is expressed in this news release or otherwise, and to not use future-oriented information or financial outlooks for anything other than their intended purpose. TransCanada undertakes no obligation to update publicly or revise any forward-looking information, whether as a result of new information, future events or otherwise, except as required by law.
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