Canadian Utilities (CU) has entered into definitive agreements, along with its partner Quanta Services Inc., for the sale of 100 percent of its interest in Alberta PowerLine (APL) through a competitive process for proceeds of approximately $300 million and the assumption of $1.4 billion of debt.
The purchaser is a consortium including Greystone Managed Investments d/b/a TD Greystone Asset Management, as manager for and on behalf of the Greystone Infrastructure Fund (Global Master), and IST3 Investment Foundation acting in respect and on behalf of its investment group IST3 Infrastruktur Global.
APL, a partnership between Canadian Utilities Limited (80 percent) and Quanta Services Inc. (20 percent), was selected in 2014 by the Alberta Electric System Operator (AESO) to design, build, own and operate the Fort McMurray West 500-kV Transmission Project.
As part of these agreements, CU is offering an opportunity for indigenous communities along the transmission line route to obtain up to a 40 percent equity interest in APL. This model will provide a long-term stable investment and further enable economic development in the local communities. The final ownership mix will be determined upon close of the purchase option for indigenous communities.
The 508-kilometer (316-mile) transmission line, running from Wabamun, Alberta, just west of Edmonton, to Fort McMurray was energized in March 2019, ahead of schedule, on-budget and with an impeccable safety record. It is also the longest 500-kV AC transmission line in Canada and was ranked among the top 50 infrastructure projects in the country. CU will remain as the operator of APL over its 35-year contract with the AESO.
CU continues to focus on a global portfolio of investments in premier energy-related infrastructure assets, while reliably delivering operational excellence with tremendous service and value to its customers and shareowners.
The sale is expected to close in the fourth quarter of 2019.
