TC Energy selling power plant assets to Ontario Power Generation for $2.87B

TC Energy selling power plant assets to Ontario Power Generation for $2.87B
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CALGARY — TC Energy Corp. says it is selling two Ontario natural gas-fired power plants and a 50 per cent interest in a third to a subsidiary of Ontario Power Generation Inc. for about $2.87 billion.

The deal through its wholly owned subsidiary, TransCanada Energy Ltd., includes the 683-megawatt Halton Hills power plant, the 900-MW Napanee generating station (which is nearing completion) and TC Energy’s 50 per cent interest in the 550-MW Portlands Energy Centre in Toronto.

TC Energy CEO Russ Girling says the sales will deliver value for shareholders and fund the Calgary-based company’s growth program.

When combined with the earlier Coolidge, Northern Courier and U.S. Midstream asset sales, TC Energy now expects to realize approximately $6.3 billion from divestitures so far this year, it said.

Ontario Power Generation CEO Ken Hartwick says the natural gas generation will play a role in maintaining system reliability for Ontario’s largest electricity generator as intermittent wind and solar generation is added.

OPG announced earlier this year it would buy the 50 per cent interest it didn’t already own in the 560-MW combined-cycle natural gas-fired Brighton Beach Generating Station from Calgary-based Canadian Utilities Ltd.

The TC Energy transaction is expected to close in late 2019 subject to regulatory approvals and Napanee reaching commercial operations.

Companies in this article: (TSX:TRP)

The Canadian Press

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