The facility is directly connected to Southern California Gas and interconnects with SCE and the CAISO via a 67-mile transmission line. The transmission line is capable of transmitting 1,100 MW and has excess capacity to meet future load growth.
The facility is also interconnected with the El Paso Natural Gas system and is situated to re-connect to the Western Area Power Administration ("WAPA"), providing market access optionality upon expiry of the PPA in 2020.
The Blythe Energy Center is operated pursuant to an Operating and Maintenance agreement with NextEra Energy Operating Services Inc. ("NextEra"). The initial term of this agreement expires in November 2016. NextEra Energy Resources developed, constructed and placed into service the Blythe Energy Center in 2003.
The Acquisition will be financed consistent with AltaGas' current capital structure. AltaGas will continue to maintain its strong balance sheet and financial discipline and is committed to maintaining its investment grade credit rating.
The transaction is subject to customary approvals including regulatory approvals from the Federal Energy Regulatory Commission of the United States government, and filings and approvals including the expiration or termination of the applicable waiting periods under the Hart-Scott-Rodino Antitrust Improvements Act of 1976. The acquisition is expected to close in the second quarter of 2013.
About AltaGas Ltd.
AltaGas is an energy infrastructure business with a focus on natural gas, power and regulated utilities. AltaGas creates value by acquiring, growing and optimizing its energy infrastructure, including a focus on renewable energy sources. For more information visit: www.altagas.ca.
This news release contains forward-looking statements. When used in this news release, the words "may", "would", "could", "will", "intend", "plan", "anticipate", "believe", "seek", "propose", "estimate", "expect", and similar expressions, as they relate to AltaGas or an affiliate of AltaGas, are intended to identify forward-looking statements. In particular, this news release contains forward-looking statements with respect to, among other things, the anticipated benefits of the Acquisition, the closing of the Acquisition, the maintenance of its investment grade rating, business objectives, expected growth, results of operations, business projects and opportunities and financial results. These statements involve known and unknown risks, uncertainties and other factors that may cause actual results or events to differ materially from those anticipated in such forward-looking statements. Such statements reflect AltaGas' current views with respect to future events based on certain material factors and assumptions and are subject to certain risks and uncertainties, including without limitation, changes in market, competition, governmental or regulatory developments, general economic conditions and other factors set out in AltaGas' public disclosure documents. Many factors could cause AltaGas' actual results, performance or achievements to vary from those described in this news release, including without limitation those listed above. These factors should not be construed as exhaustive. Should one or more of these risks or uncertainties materialize, or should assumptions underlying forward-looking statements prove incorrect, actual results may vary materially from those described in this news release as intended, planned, anticipated, believed, sought, proposed, estimated or expected, and such forward-looking statements included in, or incorporated by reference in this news release, should not be unduly relied upon. Financial outlook information contained in this press release about prospective cash flows and EBITDA is based on assumptions about future events, including economic conditions and proposed courses of action, based on management's assessment of the relevant information currently available. Readers are cautioned that any such financial outlook information contained herein should not be used for purposes other than for which it is disclosed herein. Such statements speak only as of the date of this news release. AltaGas does not intend, and does not assume any obligation, to update these forward-looking statements. The forward-looking statements contained in this news release are expressly qualified by this cautionary statement.
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