By OGJ editors
HOUSTON, Nov. 2 -- Sierra Pacific Resources (SPR) has agreed to sell its 50% interest in its subsidiary Tuscarora Gas Transmission Co. (TGT) to TC PipeLines LP for $100 million, subject to customary closing conditions.
TC PipeLines already holds a 49% interest in TGT, which owns a 240-mile interstate natural gas pipeline extending from Malin, Ore., to Reno, Nev. TC PipeLines is managed by general partner TC PipeLines GP Inc., an indirect wholly owned subsidiary of TransCanada Corp.
Once the sale is closed, expected by yearend, TransCanada will operate the TGT system.
Sierra Pacific Power Co., the utility unit in northern Nevada for SPR, is currently the primary customer for gas transportation on the TGT system and will continue this role following the sale.
Earlier this year, SPR had announced plans to sell its interest in TGT to concentrate more fully on its rapidly growing utility businesses.
