/NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES/
Trading Symbol: FCE.UN
CALGARY, March 18 /CNW/ - Fort Chicago Energy Partners L.P. ("Fort Chicago") announced today that it has completed the previously announced purchase of a 100% interest in Northbrook New York, LLC ("Northbrook"), which owns the 33 megawatt ("MW") Glen Park hydro power generation facility in upstate New York. The aggregate purchase price paid was approximately US$80.1 million, including working capital at closing, and was financed from existing bank credit facilities.
Mr. Stephen White, President and CEO of Fort Chicago, commented: "We are very excited with this acquisition, our first significant investment in the clean, renewable power sector. We believe there will be ample opportunities to grow this area of our business in the future."
The Glen Park facility is a hydroelectric generating facility located on the Black River in the Village of Glen Park, New York, downriver from the city of Watertown, just south of Lake Ontario. Glen Park commenced commercial operations in 1986 and operates as a run-of-river facility. The project has a nominal installed capacity of 33 MW and operates under a 50-year license issued by the Federal Energy Regulatory Commission in the U.S., which expires in 2032. Fort Chicago has arranged for the Glen Park facility to be operated by the same experienced third party that operated the facility prior to Fort Chicago's ownership.
Fort Chicago is a publicly traded limited partnership based in Calgary, Alberta, that owns and operates energy infrastructure assets across North America. Its Class A Units are listed on the TSX under the symbol FCE.UN. Fort Chicago is engaged in three principal businesses: a pipeline transportation business comprised of interests in two pipeline systems, the Alliance Pipeline and the Alberta Ethane Gathering System; an NGL extraction business which includes a significant interest in a world-class extraction facility near Chicago; and a power business with power facilities in Ontario, Colorado and California, district energy systems in Ontario and Prince Edward Island, and waste heat power facilities along the Alliance Pipeline. Fort Chicago and its businesses are also actively developing a number of greenfield investment opportunities that will be a key source of future growth, including LNG and pipeline facilities on the U.S. west coast, Alberta-based ethane and NGL extraction facilities, repowering and expansion opportunities at the California power facilities, and Nova Scotia-based underground natural gas storage and pipeline facilities.
Class A Unit Ownership Restrictions
Fort Chicago is organized in accordance with the terms and conditions of a limited partnership agreement which provides that no Class A Units may be held by or transferred to, among other things, a person who is a "non-resident" of Canada, a person in which an interest would be a "tax shelter investment" or a partnership which is not a "Canadian partnership" for purposes of the Income Tax Act (Canada).
SOURCE Veresen Inc.
For further information: For further information: Stephen H. White, President and C.E.O.; Richard Weech, Vice President, Finance and C.F.O., Fort Chicago Energy Partners L.P., Livingston Place, Suite 440, 222 - 3rd Avenue S.W., Calgary, AB, T2P 0B4, Phone: (403) 296-0140, Fax: (403) 213-3648, www.fortchicago.com