Mar 12 2010
Great Lakes Utilities (GLU), a municipal electric company, has signed a letter of intent to acquire five hydroelectric projects from NewPage Corporation’s subsidiary, Consolidated Water Power Company (CWPCo). The five projects that are proposed to be acquired are located in Stevens Point, DuBay, Biron, Whiting, and Wisconsin Rapids along the Wisconsin River.
The combined installed capacity of the five projects is 35.2 MW and both the parties have agreed for a price of about $2,000 per kW of installed capacity. GLU will be enabled to produce renewable and low-cost electricity with the proposed acquisition. It will also help its members to meet their renewable portfolio standards. GLU evaluated various options for producing renewable electricity including biomass and wind energy project, but the acquisition of the hydroelectric projects from CWPCo offers the best option for its participating members.
Currently, four NewPage mills in central Wisconsin are provided electricity from the hydroelectric projects, but the proposed acquisition will have not have a major impact for these mills since less than 10% of the combined electricity needs of the mills are being supplied by the hydroelectric projects. The exclusive financial advisor to CWPCo and NewPage was Sanabe & Associates, LLC for the transactions.