Canadian Utilities selling Canadian electricity generation assets

Entire fossil-fuel-based generation portfolio in Canada sold for $835 million to Heartland Generation

Canadian Utilities Ltd, an ATCO company, announced on Monday that it’s selling its entire Canadian fossil-fuel-based electricity generation portfolio for $835 million to Heartland Generation Ltd., an affiliate of Energy Capital Partners.

The deal 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.

Siegfried Kiefer
Siegfried Kiefer

“These assets provide reliable and affordable energy to customers across Canada and I want to thank our employees for their commitment and dedication to operating these assets to the highest standards,” said Siegfried Kiefer, president and chief executive officer of Canadian Utilities, in a news release.

“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 is expected to close in the second half of 2019, subject to receipt of regulatory approvals and satisfaction of other customary closing conditions.

“We are impressed by the portfolio’s high-quality assets and strong operating history. We look forward to partnering with the portfolio’s talented management team and employees and continuing to provide a high level of service to the portfolio’s offtakers and customers,” said Tyler Reeder, managing partner of Energy Capital Partners.

In a separate transaction, Canadian Utilities said it has entered into an agreement to sell its 50 per cent ownership interest in the 260-MW Cory Cogeneration Station, located outside Saskatoon, to SaskPower International.

The sale agreements don’t include ASHCOR Technologies, the Oldman River Hydro Facility, or international projects, which are being retained by Canadian Utilities, it said.

“Following the closing of the sale agreements, CU will have approximately 250 MW of electricity generation assets located in Canada, Mexico and Australia,” it added.

– Mario Toneguzzi

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