EDMONTON - Capital Power Corp. is spending $315 million to buy two power plants in the U.S. Northeast with a combined capacity of 549 megawatts.

The Edmonton-based firm, a majority of which is still owned by the city’s Epcor Utilities, said the two merchant plants, in Tiverton, Rhode Island and Rumford, Maine, are being purchased from Brick Power Holdings LLC. Both plants are natural gas-fired, combined cycle power generation facilities serving the New England region.

“Capital Power’s business and financial strategies are designed to deliver disciplined growth as we aim to reach 10,000 megawatts of assets by 2020 on a consistently accretive basis,” said Brian Vaasjo, Capital Power’s chief executive in a statement.

“The acquisition of Tiverton and Rumford demonstrates our commitment to the strategy. They provide Capital Power with the foundation for a networked hub of assets in the U.S. Northeast, one of our target markets; they help us sustain a balanced portfolio of contracted and merchant assets; and as relatively young, highly efficient gas-fired plants that use proven technologies, they fit our technology and operating focus.”

The buyer under the Share Purchase Agreement (SPA) for the transaction is a subsidiary of Capital Power LP, the legal entity that directly and indirectly holds Capital Power’s assets. The transaction is expected to close in April 2011, subject to regulatory approvals and other customary closing conditions.

Both plants are merchant facilities and sell their output into the New England Power Pool. The plants began commercial operations in 2000 and have similar design configurations that utilize a single fuel GE 7FA power island. Capital Power commissioned and operated similar technology at the Frederickson power facility in Washington state.

dcooper@edmontonjournal.com