TORONTO - TransCanada Pipelines Ltd. said on Wednesday it will team with AltaGas Services Inc. to buy Enron Canada Power Corp.'s Sundance power purchase arrangement for C$220 million ($140.1 million).
TransCanada said in a release that its TransCanada Energy Ltd. division will pay C$110 million for a 50 percent interest in the 706-megawatt partnership, with AltaGas paying the other C$110 million. The deal is scheduled to close on Dec. 31.
The company said it will not be exposed to Enron's capital risk if Enron Canada cannot fulfill its obligation to transfer the PPA to the partnership which Enron purchased from the Alberta government in August, 2000.
Enron Corp., North America's largest energy trader, filed for bankruptcy protection earlier this week.
The firm's Canadian unit, Enron Canada Corp., is hoping to stay in business, and its lawyers will appear in court on Wednesday to try to convince a judge to honor contracts for a month while it restructures.
Enron's Canadian unit told Reuters on Tuesday it had sold the Alberta power purchase agreement, but it did not name the buyers.
($1=$1.57 Canadian)
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