(c) 2006 The Associated Press

Aug. 14, 2006, 12:53PM

EDMONTON, Alberta - Epcor Power LP has agreed to buy Primary Energy Ventures LLC and its eight U.S. heat and power generation facilities for $380 million US.

The Edmonton-based utility said the plants have a combined generation capacity of about 454 megawatts and 3.1 million pounds per hour of thermal energy.

Epcor already owns 11 electricity generating stations in Ontario, British Columbia, New York state and Colorado.

"This acquisition is an opportunity to strengthen and grow the partnership, while maintaining our core commitment to stable distributions over the long-term," Brian Vaasjo, president of the general partner of Epcor LP said in a release.

"With facilities fully contracted to investment grade counterparties, the acquisition of Primary Energy Ventures further diversifies our fuel types and enhances our geographic footprint."

Based in Oak Brook, Ill., privately held Primary Energy produces power using recycled energy projects such as natural gas, waste heat, wood, tire-derived fuel, and coal.

It also owns a 15.4 percent interest in Primary Energy Recycling Holdings LLC with four energy facilities capable of producing 284 megawatts and 1.9 million pph of thermal energy and a 50 percent interest in a pulverized coal facility.

Epcor said it will pay $310 million in cash and assume $70 million in lease obligations for Primary Energy.