Canadian Utilities (CU), an ATCO company, announced today that it has entered into definitive agreements to sell its entire Canadian fossil fuel-based electricity generation portfolio for approximately C$835 million (US$617.4 million), subject to customary closing adjustments.
The sale concludes a strategic evaluation announced Sept.13, 2018.
An agreement with Heartland Generation, 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, Canada, with a combined generating capacity of approximately 2,100 megawatts.
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 advisers to CU.
In a separate transaction, CU has entered into an agreement to sell its 50 percent ownership interest in the 260-megawatt Cory Cogeneration Station, located outside Saskatoon, Canada, to SaskPower International.
The sale agreements do not include ASHCOR Technologies, the Oldman River Hydro Facility, or international projects, which are being retained by CU.
Following the closing of the sale agreements, CU will have approximately 250 megawatts of electricity generation assets located in Canada, Mexico and Australia.
