Alcoa (NYSE:AA) announced today that it has reached an agreement to sell its 351-megawatt Tapoco Hydroelectric Project to Brookfield Renewable Energy Partners.

Tapoco is a four-station hydroelectric project located on the Little Tennessee and Cheoah Rivers in eastern Tennessee and western North Carolina, and is operated by Alcoa Power Generating Inc., a wholly owned subsidiary of Alcoa. The transaction will include the four generating stations and dams, 86 miles of transmission line, and about 14,500 acres of land associated with and surrounding Tapoco.

Alcoa anticipates receiving proceeds of $600 million from the sale upon closing, which is subject to customary federal and state regulatory approvals. The transaction, which involves non-core assets, is expected to close by year-end.

Tapoco is licensed by the Federal Energy Regulatory Commission (FERC).

Tapoco was originally developed by Alcoa to provide power for its aluminum smelting and rolling mill operations in Alcoa, Tenn. The four dams – Calderwood, Santeetlah, Chilhowee and Cheoah – came into service between 1919 and 1957.

J.P. Morgan advised Alcoa on the transaction.

Source: Business Wire