Ares-EIF Sells Allegheny Hydro Plants
Ares Management, L.P. (NYSE:ARES) announced today that a fund managed by the Ares-EIF Group and Northbrook Energy, LLC have recently sold two run-of-the-river hydroelectric power facilities on the Allegheny River in Pennsylvania to the Public Sector Pension Investment Board (PSP Investments). Terms of the transaction were not announced.
The two projects, Allegheny Lock & Dam 8 and Allegheny Lock & Dam 9, comprise 31.5 MW of nameplate baseload, renewable capacity located on the Allegheny River in Armstrong and Indiana Counties, PA. The facilities are within the PJM Interconnection power market footprint and are interconnected with the New York Independent System Operator power market.
The capacity and energy generated by the projects have been sold to New York State Electric & Gas Corporation under long-term power purchase agreements that extend through 2030. In addition, the projects sell Renewable Energy Credits in Maryland.
“In light of the strong demand in the marketplace for newer-vintage, utility-scale, run-of-the-river hydroelectric facilities, our decision to partner with Northbrook to acquire and improve the Allegheny hydro projects has resulted in a very successful investment for our investors,” said Mark Segel, a Partner in the Ares-EIF Group.
Goldman Sachs & Co. served as financial advisor to the Ares-EIF Group and Northbrook Energy, and conducted a two-stage, formal auction process to sell the equity interest in the projects.
Foley Lardner served as transaction counsel to Ares-EIF Group and Northbrook.