22 January 2010– Negotiations between the provinces of Quebec and New Brunswick have concluded with Hydro-Quebec agreeing to acquire much of NB Power’s generation assets, including the Point Lepreau nuclear power plant, for C$3.2 billion (US$3 billion).
The companies signed a memorandum of understanding in October 2009 that allowed Hydro-Quebec to buy the Point Lepreau station for C$1.4 billion (US$1.3 billion) once the refurbishment is complete on the plant’s 680 MW Candu 6 reactor. It is expected to be finished by October 2010 and in operation by 2011.
The deal also includes NB Power selling seven hydroelectric generation facilities, two diesel peaking units and associated transmission rights for C$1.8 billion ($1.7 billion). NB Power’s transmission and distribution arms will be retained by the province of New Brunswick.
Hydro-Quebec will act as an electricity wholesaler to NB Power, providing it with 14 TWh of electricity each year under a long-tem contract.
The transaction is expected to be complete by March 2010 for all assets except Point Lepreau.
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Hydro-Quebec to buy NB Power for $4.75bn