OPG Subsidiary Reaches Agreement with Affiliates of TC Energy to Acquire Natural Gas Assets
Purchase continues OPG's strategic growth with greater financial return for Ontarians
TORONTO, July 30, 2019 /CNW/ - Ontario Power Generation ("OPG"), under a new subsidiary, has entered into a purchase agreement with affiliates of TC Energy (formerly TransCanada Corporation) to acquire a portfolio of combined-cycle natural gas-fired plants in Ontario.
"The role that natural gas plays in maintaining system reliability has become even more important with the addition of intermittent wind and solar generation in recent years," said Ken Hartwick, OPG's President and CEO. "Natural gas is the partner or enabler of renewable energy, providing the flexibility required to ensure a reliable electricity system."
Total purchase price for this acquisition is $2.87 billion subject to customary closing adjustments. The transaction is also subject to receipt of standard regulatory approvals. Future profits generated from these assets will stay in Ontario for the benefit of Ontarians. RBC Capital Markets acted as a financial advisor to OPG on this transaction.
Key Facts About TC Energy Transaction:
Acquiring portfolio of combined-cycle natural gas-fired plants in Ontario from affiliates of TC Energy:
- 100% ownership of Napanee Generating Station (900 MW)
- 100% ownership of Halton Hills Generating Station (683 MW)
- Remaining 50% ownership of Toronto's Portlands Energy Centre (50% of 550 MW)
In addition to these assets, OPG entered into a purchase and sale agreement with affiliates of Canadian Utilities Limited in June to acquire the remaining 50 per cent interest in the 560MW combined-cycle natural gas-fired Brighton Beach Generating Station. OPG already owns 50 per cent of the Brighton Beach Generating Station.
OPG is the largest electricity generator in the province, providing almost half the power Ontarians rely on every day. It is also one of the most diverse generators in North America with expertise in nuclear, hydro, biomass, solar and gas.
SOURCE Ontario Power Generation Inc.
Ontario Power Generation, 416-592-4008 or 1-877-592-4008; Follow us @opg
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