MILLINOCKET – A planned public hearing and Town Council vote on Great Northern Paper’s tax increment financing proposal have been rescheduled.

In wrapping up major financing deals to fund its $150 million paper mill modernization project, Great Northern Paper Inc. last week announced the company will sell its hydroelectric system to Great Lakes Power Inc., a Canadian power company with headquarters in Toronto.

The Canadian company will spend $156.5 million to buy Great Northern’s hydro system, which consists of six hydroelectric power stations and 11 dams with a generating capacity of 130 megawatts, and the related transmission system. Great Northern will retain ownership of its steam generating plants, which are fueled by bark and oil and produce about 150 megawatts of power.

The sale, which is expected to be final in January, 2002, completes Great Northern Paper’s financing for its $150 million paper mill modernization project.

Great Lakes Power Inc. is a subsidiary of Brascan Corp., a multinational conglomerate, which also owns Trilon Financial Corp. Trilon Financial is providing part of Great Northern’s financing. Terms of the loan were not released.

The planned Oct. 16 public hearing on a proposed TIF for the paper company has been rescheduled for 6 p.m. Monday, Oct. 29, at the high school. The Town Council now plans to vote on the TIF proposal during its Nov. 8 meeting.

Brian Stetson, GNP manager of governmental affairs, said company officials plan to meet with town officials to modify the TIF proposal to reflect the sale.

Town Manager Gene Conlogue said adjustments needed to be made to the terms of the TIF proposal so the hearing and council vote were rescheduled.