LS Power to Acquire U.S. Portfolio of 42 Hydro Facilities; Geographically Diverse Projects Support Company’s Energy Transition Focus
LS Power, a leading development, investment and operating company focused on the North American power and energy infrastructure sector, today announced it has reached an agreement to acquire 42 run-of-river hydro facilities across 11 states, totaling 334 MW, from Hull Street Energy. The acquisition is expected to close by the end of Q1 2023, subject to the satisfaction of certain closing conditions and regulatory approvals.
The portfolio is primarily concentrated in ISO-NE (152 MW), PJM (86 MW) and NYISO (48 MW), with the remaining facilities located in CAISO, SERC and WECC.
“With the addition of this large, geographically diverse, run-of-river hydroelectric portfolio, combined with our existing energy transition platforms, LS Power continues to lead the effort to develop a cleaner, more reliable, and more affordable energy ecosystem,” said LS Power CEO Paul Segal.
“Reducing carbon intensity is an enduring secular trend that has long informed our energy transition strategy, which combines our renewable generation and fuels, battery energy storage, distributed energy, transmission, and transportation electrification platforms with a flexible, complementary natural gas fleet,” Segal added.
“The hydro projects we are acquiring are located in states and markets with attractive regulatory environments supportive of energy transition investments, which we anticipate will grow over time,” said LS Power Generation President Nathan Hanson. “Policies in New York and Massachusetts already promote the use of small hydro projects to meet renewable portfolio standards, and we expect additional states will follow as energy transition tailwinds continue to grow.”
“Hydroelectric generation is a long-lived, carbon free asset class that can operate essentially in perpetuity with the appropriate maintenance and care,” continued Hanson. “These projects will be integral to achieving carbon reduction goals, and we are excited to add them to our portfolio.”
LS Power was represented by Milbank LLP as legal counsel with BMO Capital Markets Corp. and Scotiabank serving as financial advisors.
LS Power’s growing family of energy transition platforms consists of the following:
- EVgo, the nation’s largest public fast-charging network for electric vehicles, powered by 100%renewable energy
- Endurant Energy, a leading provider of on-site energy infrastructure solutions
- CPower Energy Management, a leading provider of distributed energy resource management solutions
- Primary Renewable Fuels, LLC, a waste-to-renewable natural gas development and operating platform
- REV Renewables, a leader in renewables and energy storage with a ~2.8 GW operating portfolio including the largest non-utility owned pumped storage hydro portfolio in the U.S.
- Rise Light & Power, NYC’s largest generator, and developer of clean energy infrastructure
- LS Power Grid, developer and operator of ~680 miles of high-voltage transmission lines, with 100+ miles and multiple substations under construction
- LS Power Generation, operator of ~14,000 MW of flexible, fast-start gas facilities that complement the intermittency of wind and solar resources