Macquarie acquires new North America power business

Macquarie Cook Power, has signed an agreement to buy the wholesale electric marketing and trading business of Chicago-based utility Integrys Energy Group before the end of Q2 this year.

"The Integrys portfolio is particularly attractive for our energy markets activities in North America," says Nicholas O'Kane, executive director and global head of Macquarie's energy markets division. "It expands our volumes and penetration across a number of major power markets on the continent, making us even more relevant to both existing and new customers."

Financial details of the transaction were not disclosed, but according to a Macquarie press release the acquisition will double the customer base and scale of Macquarie Cook Power's existing power trading business.

The deal encompasses a portfolio of wholesale electric trading positions, including physical forwards, financial derivatives, capacity and transmission rights. This portfolio of transactions had an annual average total gross volume in excess of 125 million megawatt-hours (MWh) over the past three years.

"Similar to what we did earlier this year with the acquisition of Constellation Energy Group's downstream natural gas trading business, we expect to integrate the portfolio into Macquarie Cook Power," says O'Kane.

Macquarie Cook Power sits alongside the natural gas business Macquarie Cook Energy, which bought Constellation Energy's Houston-based downstream natural gas trading operations in February last year.