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NewPage subsidiary, CWPCo signs agreement with GLU to sell five hydroelectric projects in Wisconsin

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NewPage subsidiary, CWPCo signs agreement with GLU to sell five hydroelectric projects in Wisconsin

November 09, 2010 - 18:24
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MIAMISBURG, OH, Nov. 5, 2010 (Press Release) -Great Lakes Utilities (GLU) and Consolidated Water Power Company (CWPCo), a subsidiary of NewPage Corporation, announced they've signed an Asset Sale Agreement on Monday, November 1 to sell five CWPCo hydroelectric projects located along the Wisconsin River in DuBay, Stevens Point, Whiting, Biron and Wisconsin Rapids, Wisconsin to GLU.

The five hydroelectric projects have a combined installed capacity of 35.2 megawatts and the agreed upon price is $70,000,000.

The proposed acquisition will enable GLU to generate low cost, renewable power and help meet the needs of its members' renewable portfolio standards. While GLU assessed different options for generating renewable power, including wind and biomass projects, the acquisition of CWPCo's hydroelectric projects provides the best option for participating members.

The assets included in the proposed acquisition currently provide power to four central Wisconsin NewPage mills. However, the decision to sell these assets is expected to have little impact on these operations, as less than ten percent of the mills' combined required electricity demand is currently supplied by the CWPCo hydroelectric projects.

Timing of the closing of the transaction has not been determined and is subject to regulatory approvals.

In February 2010, CWPCo, along with Wisconsin Rapids Water Works and Lighting Commission (WRWWLC) filed an application with the Public Service Commission of Wisconsin for approval of the sale of CWPCo utility transmission and distribution assets to WRWWLC. Time of closing in that transaction is also dependent on regulatory review and the Commission's approval.

Sanabe & Associates, LLC acted as exclusive financial advisor to NewPage and CWPCo for the proposed transactions.