Hydro-Qubec buying U.S. company Great River Hydro for $2B US

A subsidiary of Hydro-Qubec has signed a deal to buy U.S. power generator Great River Hydro LLC for $2 billion US theCrown corporation's largest acquisition sinceits foundingin 1944.

TheU.S. company owns 13 hydropower generating stations with a total installed capacity of 589 megawatts along the Connecticut and Deerfield rivers in Vermont, New Hampshire and Massachusetts.

The assets supply enough energy to power more than213,000 homes in New England.

"These are high quality assets, and it is rare for these assets to become available on the acquisition market," saidSophie Brochu, president and CEO of Hydro-Qubec,in an interview on Radio-Canada's Tout un matin Wednesday.

Brochusays the acquisition will allow Hydro-Qubec to combine its know-how in themanagement and development of hydroelectric resources withGreat River Hydro's in-depth knowledge of the New England market.

Lynn St-Laurent, a spokesperson for the provincially owned utility, says it makes "perfect sense"to be acquiringgenerating stations in the region.

"We've been exporting there since the 80s and so we have a well-established partnership and it's something we want to build on," she said.

Great River Hydro, which has approximately 100 employees,is being sold by affiliates ofArcLightCapital PartnersLLC.

As Hydro-Qubecwants the companyto remain a separate entity, it says all jobs will be maintained, as will working conditions.

St-Laurent clarified that thestations will continue to generateenergy in New England, for New England.

"This is not energy for Quebec, this is really Hydro-Qubec owning a generation asset in [the region]," she said.

Hydro-Qubec is anticipating an average of $171 million US of added revenue per year should the deal go through.

The transaction is subject to customary closing conditions, including regulatory approvals.

Strategy to revive stalled transmission line in Maine

Franois Bouffard, a professor of electrical engineering at McGill University, says he's notsurprised by the acquisition, especially since the infrastructure is already in place.

He says acquiring more energy companies outside of Canada as Hydro-Qubecsays it is not ruling out doing isnecessary if it wants to keep growing as a company.

"[Hydro-Qunec has] this amazing engineering and business machine that is very well oiled up and they can definitely bring in more assets, more revenue and sort of diversify their portfolio of assets around the world," said Bouffard.

But the professor also believes the purchase was a strategic move in reviving Hydro-Qubec'sstalled power line project through Maine.

Maine residents quashed the projectafter 59 per cent voted to ban the construction of the233-kilometre hydro corridorin a referendum last November. The project,known as the New England Clean Energy Connect Transmission LLC (NECEC),has beenon holdsince the historic vote.

But in August, Maine's highest courtbreathed new life into the NECEC, ruling that the statewide vote againstthe project was unconstitutional.

"Probably Hydro-Qubec's strategy behind this is to have a strong footing in New England to really perhaps swing the deal, to show that they're investing money in New England not just for Quebecbut for New England as a whole," saidBouffard.