Innergex acquiring Brown Lake and Miller Creek hydro facilities in B.C.
June 21, 2012 – Innergex Renewable Energy Inc. has signed a purchase and sale agreement to acquire all of the units of the entity owning the Brown Lake and Miller Creek hydroelectric facilities located in British Columbia from v Corp. The purchase price of these assets is about $69.2 million.
The acquisition of the Miller Creek facility was conditional upon a 30-day right of first refusal in favour of BC Hydro (which the utility waived). Innergex expects the transaction to close in July 2012, subject to regulatory approvals and other customary closing conditions.
“British Columbia has become a major growth pole for Innergex in recent years. We expect the demand for power to increase significantly in B.C., given its strengthening economy and ambitious development projects,” said Michel Letellier, president and CEO of Innergex. “With this acquisition, we continue to execute our business plan of maintaining a balance between cash flow-generating assets in operation, projects under development, and a portfolio of prospective projects.”
Brown Lake is a 7.2 MW facility commissioned in 1996 and located on Crown land near Prince Rupert in the North Coast region of the province. This facility has an average annual production of 51,800 MWh and, because it is fed by two lakes, Innergex says Brown Lake has historically exhibited relatively stable production levels throughout the year and could offer some storage capabilities. Innergex has also identified the potential to double the plant’s installed capacity to 14.4 MW and increase expected average annual production by 27,000 MWh.
Miller Creek is a 33 MW facility commissioned in 2003 and located on Crown land near Pemberton, in the Lower Mainland region of the province. Miller Creek has an average annual production of 97,900 MWh. Innergex has plans to undertake an $8.5-million capital expenditure program to upgrade the penstock and water intake, which should increase the plant’s expected average annual production to 102,795 MWh.