BOSTON - Atlantic Power Corp. (TSX:ATP) said Friday it plans to acquire renewable power developer Ridgeline Energy Holdings Inc. in a deal worth $88 million.
Ridgeline Holdings has interests in three U.S. wind projects — two in operation and one that will be completed at year end — totalling 150 megawatts. It also has a wind and solar development pipeline of more than 20 projects in the U.S. totalling approximately 1,000 megawatts.
Atlantic Power president and CEO Barry Welch noted that the three wind projects have 20-year and 25-year power purchase agreements and are expected to generate $9 to $12 million of operating cash flow a year starting in 2013.
"In addition, the company will acquire Ridgeline's development pipeline, which includes approximately 1,000 MW of solar and wind projects," he said, adding that the Ridgeline team of more than 30 employees would add substantial experience in renewable project acquisition, development, construction and asset management.
Atlantic Power sells electricity to utilities and other large commercial customers under long-term power purchase agreements.
It has interests in 30 operational facilities in 11 states and two provinces with a generating capacity of 2,117 MW. It also has a 135-kilometre, 500-kilovolt electric transmission line in California, a 53-MW biomass project under construction in Georgia and a 300-MW wind project under construction in Oklahoma.