Canadian Utilities Limited (CU), an ATCO company, announced Mon. May 27 that it has entered into definitive agreements to sell its entire Canadian fossil fuel-based electricity generation portfolio for aggregate proceeds of approximately $835 million, subject to customary closing adjustments.
The sale concludes a strategic evaluation announced Sept. 13, 2018.
An agreement with Heartland Generation Ltd., an affiliate of Energy Capital Partners, includes 11 partly or fully owned natural gas-fired and coal-fired electricity generation assets located in Alberta, British Columbia, and Ontario, with a combined generating capacity of approximately 2,100 megawatts (MW).
The sale is expected to close in the second half of 2019, subject to receipt of regulatory approvals and satisfaction of other customary closing conditions. RBC Capital Markets and J.P. Morgan are acting as joint financial advisors to CU.
In a separate transaction, CU has entered into an agreement to sell its 50 per cent ownership interest in the 260 MW Cory Cogeneration Station, located outside Saskatoon, Sask., to SaskPower International.
“These assets provide reliable and affordable energy to customers across Canada,” said Siegfried Kiefer, President & Chief Executive Officer, Canadian Utilities.
“We are focused on building a globally diversified portfolio of energy-related infrastructure assets. Continually evaluating our business model and strategies ensures we are well-positioned to capture opportunities in markets at home and abroad.”
The sale agreements do not include ASHCOR Technologies, the Oldman River Hydro Facility, or international projects, which are being retained by the company.
Following the closing of the sale agreements, CU will have approximately 250 MW of electricity generation assets located in Canada, Mexico and Australia.
With approximately 5,000 employees and assets of $22 billion, Canadian Utilities Limited is an ATCO company.