National Grid makes New York sale

National Grid remains a major US power producer

UK utility National Grid says it has sold its Ravenswood generating station in New York city for $2.9bn (£1.46bn) to energy pipeline firm Trans Canada.

The deal, for a plant with 2,480 megawatts of generating capacity, is expected to be completed this summer.

Plants serving New York City are seen as desirable as it is hard to build new ones in the densely-developed region.

National Grid was told by authorities to sell Ravenswood after buying US gas distributor Keyspan for $7.3bn in 2006.

Steve Holliday, chief executive of National Grid, said the deal delivered value for shareholders, and that Trans Canada had "an excellent track record in operating power plant".

Gas and electricity

In the US, National Grid delivers electricity to millions of customers in Massachusetts, New Hampshire, New York and Rhode Island.

It also manages the electricity network on Long Island under an agreement with the Long Island Power Authority.

After the sale of Ravenswood it said it still remained the largest investor-owned power producer in New York State.

It is also the largest distributor of natural gas in the north-eastern US, serving 3.4 million customers in New York, Massachusetts, New Hampshire and Rhode Island.

Trans Canada says the deal will reduce its earnings for the first two years but enhance profit afterwards.