CALGARY—AltaGas Ltd. has agreed to pay $515-million to acquire Blythe Energy LLC, which owns a 507-megawatt electricity generation plant in Southern California.
In addition to the natural gas-fired power plant, the purchase from affiliates of LS Power Equity Advisors LLC includes associated major spare parts and a related 230 kilovolt, 108-kilometre transmission line in the state.
“The acquisition of Blythe is an important addition to our power business,” AltaGas chairman and CEO David Cornhill said in announcing the deal.
“The power purchase agreement provides stable earnings and cash flow and, with the infrastructure in place today, the facility is well positioned to access two premium power markets in California and Arizona in the future.”
AltaGas said the acquisition is expected to be added to earning and cash flow per share in 2014, the first full year of ownership.
Blythe has a power purchase agreement through to July 2020 with Southern California Edison, the provisions of which match revenues to all major plant costs.
Calgary-based AltaGas is an energy infrastructure business with a focus on natural gas, power and regulated utilities.