Energy Investors Funds‘ United States Power Fund IV has completed the acquisition of two operating hydroelectric projects, Allegheny 8 and Allegheny 9 in partnership with Northbrook Energy. Terms of the deal were not disclosed.
Energy Investors Funds (“EIF”) announced today that its United States Power Fund IV has completed the acquisition of two operating hydroelectric projects, Allegheny 8 and Allegheny 9 (together “Allegheny” or the “Projects”) in partnership with Northbrook Energy. Terms of the deal were not disclosed.
Allegheny are two run-of-the-river hydroelectric projects totaling 30.4 MW located on the Allegheny River in Pennsylvania, approximately 35 miles from Pittsburgh. Each plant has a long-term power purchase agreement (“PPA”) with New York State Electric & Gas Corporation (“NYSEG”) that runs through August 2030. The Projects began commercial operation in 1990 and have been very well maintained throughout their use. Northbrook Power Management (“NPM”), a wholly-owned subsidiary of Northbrook Energy, will operate the Projects going forward.
“We’re happy to complete the acquisition of Allegheny,” said Herb Magid, a Managing Partner at EIF. “We believe the project has all of the attributes we look for in an investment. It has a solid operational history, a long-term off-take contract with a highly rated utility for the power that the plants produce, and great prospects for operating efficiently well into the future. We’re pleased to make this investment on behalf of our limited partners.”
“We are pleased to be partnering with EIF on this project,” said Chuck Ahlrichs, President of Northbrook Energy. “We’ve worked with them on several hydroelectric projects and appreciate their level of commitment and trust in us.”
About Energy Investors Funds
EIF was founded in 1987 as one of the first private equity fund managers dedicated exclusively to the independent power and electric utility industry. Its consistent, proven investment strategy is to create geographically and technologically diversified portfolios of electric power-related assets that provide superior risk-adjusted equity returns with current cash flow and capital appreciation. EIF has raised over $5 billion in equity capital and currently manages multiple private equity funds from its offices in Boston, New York, and San Francisco. These funds have made over 100 diversified investments with an underlying asset value greater than $15 billion. EIF-managed funds own approximately 4,000 MW of capacity in facilities that are currently operating or under construction and an additional 6,000 MW in facilities that are in various stages of development. EIF closed on its latest fund, EIF United States Power Fund IV, L.P., in October 2011, with $1.713 billion in capital commitments. For more information, visit www.eif.com.
About Northbrook Energy
Northbrook Energy, headquartered in Scottsdale, Arizona, is a privately held company dedicated to the ownership and operation of hydroelectric power facilities. The company specializes in identifying, acquiring and enhancing assets via private equity and project financing, and is a participant in 21 facilities across the U.S. Northbrook has transacted with a wide variety of counterparties, including electric utilities, manufacturing companies and governmental entities. For more information, visit www.nbenergy.com.