Algonquin Power Fund, Emera to buy California utility
A 50-50 joint venture, Calpeco, will acquire a 12-megawatt generator and power lines that supply 47,000 homes and businesses, Oakville, Ontario-based Algonquin said in a statement. The deal is expected to close in 2010, subject to state and federal approvals. Emera is based in Halifax, Nova Scotia.
California has set the most ambitious goals in the U.S. to cut heat-trapping emissions from power plants and to add electricity generated from renewable energy such as wind and solar. Algonquin owns 53 power plants in the U.S. and Canada, mostly driven by water, wood waste or landfill gas.
Separately, Emera, owner of electric utilities in Nova Scotia and Maine, said it will acquire 9.9 percent of Algonquin when the California deal closes, with an option to buy another 5 percent stake.
Algonquin rose 13 percent, or 33 cents, to $2.83 on Toronto Stock Exchange. Emera gained 30 cents to $20.11. Las Vegas-based NV Energy fell 3 cents to $9.65 in New York Stock Exchange composite trading.
The California utility may expand as it serves a growing area near Lake Tahoe, the buyers said. All current employees will be offered jobs, they said.
NV Energy changed its name from Sierra Pacific Resources Inc. in September, saying it would concentrate on power generation and supply in Nevada.
Related News

Australia PM rules out taxpayer funded power plants amid energy battle
MELBOURNE - Australian Taxpayers won't directly fund any new power plants despite some Coalition MPs seizing on a new report to call for a coal-fired power station.
The Australian Competition and Consumer Commission recommended the government give financial certainty to new power plants, guaranteeing energy will be bought at a cheap price if it can't be sold.
It's part of a bid to cut up to $400 a year from average household power prices.
Prime Minister Malcolm Turnbull said the finance proposal had merit, but he ruled out directly funding specific types of power generation.
"We are not in the business of subsidising one…