GDF to Buy FirstLight Power as Part of U.S. Expansion

By Tara Patel

Sept. 2 (Bloomberg) -- GDF Suez SA, the world's second- biggest utility, agreed to buy U.S. hydroelectricity producer FirstLight Power Enterprises Inc. for an undisclosed price to add generation capacity in New England.

FirstLight has 15 power generation plants with a total generating capacity of 1,538 megawatts in Massachusetts and Connecticut, the Paris-based company said today in a statement.

``FirstLight has various expansion opportunities within its portfolio and reinforces GDF Suez's power generation position in the New England market,'' the statement said. FirstLight's assets have ``diversity'' in type and location and will complement GDF Suez's U.S. natural gas business, it said.

Le Figaro newspaper said today GDF Suez paid 1.3 billion euros ($1.9 billion), citing unidentified bankers. GDF Suez Spokesman Jerome Chambin declined to give a price.

FirstLight Power, which is based in Hartford, Conn., operates conventional hydro stations with a generating capacity of 216 megawatts on the Shetucket and Housatonic Rivers in Connecticut and the Connecticut River in Massachusetts, according to the company's Web site.

The company also has a 1,080 megawatt pumped storage hydroelectric station in Northfield, Massachusetts as well as another 29 megawatts in New Milford, Connecticut, the web site said. It has a 146-megawatt coal-fired plant in Holyoke, Mass.

To contact the reporter on this story: Tara Patel in Paris at Tpatel2@bloomberg.net