8-KAcquisitions & DispositionsExhibits & Filings

EVERSOURCE ENERGY 8-K Report, Acquisition Completed (Nov 1, 2006)

Filed November 1, 2006For Securities:ES

Summary

Eversource Energy (formerly Northeast Utilities) announced on November 1, 2006, the completion of the sale of its competitive generating assets in Massachusetts and Connecticut. This strategic divestiture involved the sale of Northeast Generation Company (NGC) and its hydroelectric and pumped-water storage facilities, along with the Mt. Tom coal-fired power plant, to affiliates of Energy Capital Partners (ECP). The total transaction value was approximately $1.0 billion in cash, plus the assumption of $320 million in debt by ECP's affiliates. This sale marks a significant shift in the company's business strategy, moving away from competitive generation towards its regulated utility operations. Investors should note that the assets and operations related to these generating facilities had previously been classified as held for sale and reported as discontinued operations in prior financial filings, indicating this was a planned strategic move to streamline the company's portfolio and focus on its core regulated businesses.

Key Highlights

  • 1Eversource Energy (Northeast Utilities) completed the sale of its competitive generating assets in Massachusetts and Connecticut on November 1, 2006.
  • 2The transaction involved the sale of Northeast Generation Company (NGC) and its 14 hydroelectric/pumped-water storage plants (1,296 MW) to Energy Capital Partners (ECP) affiliates.
  • 3The Mt. Tom coal-fired plant (146 MW) in Massachusetts was also sold to an ECP affiliate.
  • 4The aggregate purchase price was approximately $1.0 billion in cash, plus $320 million in assumed debt.
  • 5The assets sold were previously designated as 'held for sale' and their operations were reported as 'discontinued operations'.
  • 6This divestiture signifies a strategic shift by Eversource Energy to focus on regulated utility operations.
  • 7The buyer, ECP, and its affiliates, have no prior material relationship with Eversource Energy outside of this transaction.

Frequently Asked Questions

The main event reported is the completion of the sale of Eversource Energy's (then Northeast Utilities) competitive generating assets located in Massachusetts and Connecticut to affiliates of Energy Capital Partners (ECP).

The assets sold included Northeast Generation Company (NGC), which owns 14 hydroelectric and pumped-water storage generating plants totaling 1,296 megawatts, and the 146-megawatt coal-fired plant at Mt. Tom in Holyoke, Massachusetts.

The total transaction value was approximately $1.0 billion in cash paid by ECP affiliates, plus approximately $320 million of NGC's assumed debt.

The financial statements for the sold assets and their operations were already categorized as 'assets held for sale' and reported as 'discontinued operations' in previous filings, indicating this was a planned strategic divestiture rather than an unexpected event.