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May 2, 2011

First Wind, utilities launch new venture

By The Mainebiz News Staff

First Wind, the largest developer of wind farms in Maine, has partnered with Canada-based Emera Inc. and another power company to build and operate energy projects in the Northeast.

The partnership, announced Saturday, brings together Massachusetts-based First Wind, Halifax, Nova Scotia-based Emera -- which owns Bangor Hydro Electric Co. and Maine & Maritimes Corp. -- and Ontario-based Algonquin Power and Utilities Corp., according to a press release. First Wind's 370-megawatt wind farm portfolio will become part of a new operating company, of which First Wind will own 51%, while the utilities will own the other 49% through a joint venture called Northeast Wind. Northeast Wind will invest a total of $333 million into the operating company, including a $150 million loan, funding "further growth of well-sited and well-run wind energy projects in the region," First Wind CEO Paul Gaynor said in the release. Emera will finance the transaction through existing lines of credit. The transaction is expected to close by the end of the year, pending state and federal regulatory approval.

The deal also allows Algonquin and Emera to expand their presence in the renewable energy sector. Algonquin owns hydroelectric generating and thermal power facilities in northern Maine, and Emera is an investor in the company. A provision of the deal includes Emera spending $37 million to increase its ownership interest in Alongquin up to 25% if shareholders approve it.

First Wind last fall canceled its initial public offering, through which it had hoped to raise up to $312 million, citing an unfavorable market.

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