4 September 2002 – Brascan Power, which owns 50 per cent of the Lake Superior Power Generating Facility in northern Ontario, announced the acquisition of the remaining 50 per cent from its partner Duke Energy for C$65 million, comprised of approximately C$30 million cash and the assumption of C$35 million of debt in the partnership.
The deal is expected to close after obtaining the required regulatory approvals.
The Lake Superior Power facility (LSP) is a 110-megawatt, natural gas-fired co-generation plant. Located in Sault Ste. Marie, LSP operates in conjunction with Brascan Power’s 16 hydroelectric power plants in northern Ontario, which together produce a total of over 940 megawatts.
Powered by two GE gas turbines, LSP produces 850 gigawatt-hours of electricity per year as well as steam for industrial customers. All of LSP’s energy production is under long-term contract to Ontario Electricity Finance Corporation.
“The acquisition of the remaining 50-per cent interest in the Lake Superior Power facility furthers our growth strategy of investing in high-quality, low-cost generating assets which provide sustainable and growing cash flows” commented Harry Goldgut, chief executive officer of Brascan Power. “This investment gives us 100-percent ownership of a unique co-generation facility. It also diversifies our power base while creating significant value through the operating synergies achieved in our combined, existing assets in northern Ontario.”
“The sale of our interest in the Lake Superior Power project is an example of Duke Energy’s ability to capture shareholder value through active management of our asset portfolio and allows us to recycle capital across the enterprise,” said Bruce A. Williamson, president and chief executive officer, Duke Energy Global Business Development. “Although we are divesting of this asset, we will continue to be able to serve markets and customers in Canada through other business interests.”
Brascan Corp. owns, manages and builds businesses which generate sustainable cash flows. Current operations are largely in the real estate, financial and power generation sectors. Brascan Power has developed and successfully operated hydroelectric power facilities in North and South America for over 100 years. Brascan is listed on The Toronto Stock Exchange under the symbol BNN.A and the New York Stock Exchange under the symbol BNN. For more information, please visit the company’s Web site at www.brascancorp.com.
Duke Energy is a diversified multinational energy company with an integrated network of energy assets and expertise. The company manages a dynamic portfolio of natural gas and electric supply, delivery and trading businesses – meeting the energy needs of customers throughout North America and in key markets around the world. Duke Energy, headquartered in Charlotte, N.C., is a Fortune 100 company traded on the New York Stock Exchange under the symbol DUK. More information about the company is available on the Internet at: www.duke-energy.com.