TransCanada PipeLines has signed an agreement to acquire the 300 MW ManChief power plant from an affiliate of El Paso Corporation for approximately $127 million, subject to post-closing adjustments.
The closing of the acquisition is expected to be completed in the fourth quarter of 2002, and is conditioned upon receipt of various third party consents and regulatory approval.
Upon completion of the ManChief acquisition, TransCanada will own, control or be developing a total of approximately 2,550 MW of power. The entire capacity of the natural-gas-fired ManChief plant is sold under long-term tolling contracts that expire in 2012.
The ManChief power plant is a simple-cycle, two-turbine facility located near Brush, CO, approximately 145 kilometers (90 miles) northeast of Denver. The plant began operations in July 2000. TransCanada expects operations and maintenance services for the ManChief power plant will continue to be supplied by the current contracted service provider, Colorado Energy Management, LLC.