Hydroelectric, Renewables

Brascan to buy Reliant’s NY plants for $900m

19 May 2004 – Canadian conglomerate Brascan Corp. on Tuesday said it agreed to buy 71 hydroelectric power plants and a co-generation plant in New York from Reliant Energy Inc. for $900m in cash.

The sale, which is subject to regulatory approval and expected to close in the third quarter, comes as Reliant is selling assets to trim debt after avoiding bankruptcy last year by securing a $5.9bn refinancing package.

Houston-based Reliant, which bought the assets involved in the deal as part of its February 2002 purchase of Orion Power Holdings, said it will use proceeds from the sale to repay bank debt associated with its Orion Power New York and Orion Power Midwest subsidiaries.

Brascan, a Toronto-based owner of real estate, power plants and mines, said the acquired plants would add to its nearly 40 existing plants in New England and Canada, expanding its ability to market electricity in those interconnected regions.