Gas

Ontario Power Generation acquiring $2.8B in gas-fired plants from TC Energy

The facilities include the 683-MW Halton Hills power plant, the 900-MW Napanee generating station which is nearing completion and TC Energy’s 50 percent interest in the 550-MW Portlands Energy Centre.

TC Energy Corp. is continuing its series of recent fundamental changes by divesting more than 1,800 MW of power generation capacity in Canada.

The company formerly known as TransCanada until the second quarter announced this week that it is selling interest in the three plants to Ontario Power Generation Inc. in a deal valued at around $2.8 billion. Combined with earlier selling of energy assets, the company says it will gain more than $6.3 billion toward its anticipated $30 billion capital program for other projects.

“The sale of these facilities is part of our ongoing efforts to maximize value for our shareholders and fund our industry-leading secured growth program in a disciplined manner,” said Russ Girling, TC Energy CEO. “We continue to be a significant private sector power generator in Canada and are committed to the ongoing multi-billion-dollar life-extension program at the Bruce Power nuclear facility in Ontario. In addition, we remain interested in new low-risk investment opportunities in the electricity sector within our core North American markets.”

The facilities include the 683-MW Halton Hills power plant, the 900-MW Napanee generating station which is nearing completion and TC Energy’s 50 percent interest in the 550-MW Portlands Energy Centre.

The transaction is expected to close in late 2019 subject to a number of closing conditions which include regulatory approvals and Napanee reaching commercial operations as outlined in the agreement. The combined-cycle Napanee power plant is on the north shore of Lake Ontario.

Once the sale of those plants is completed, TC Energy will own six gas-fired generating stations and one nuclear plant. Those total 4,200 MW in capacity.

TC Energy changed its name from TransCanada earlier this month, changing a title it had held since 1951. The name reflects the company’s increasing business shift, including gaining 60 percent of revenues from U.S. operations.

Ontario Power Generation is the largest utility in its province. OPG has 66 hydro, two nuclear and, with the TC Energy deal, four gas-fired stations.

 

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