Toronto: Hydro One Limited announced January 29 that its wholly-owned subsidiary Hydro One Inc. has entered into a purchase agreement to acquire from Brookfield Infrastructure various entities that own and control Great Lakes Power Transmission LP, an Ontario regulated electricity transmission business operating along the eastern shore of Lake Superior, north and east of Sault Ste. Marie, Ontario, for $222 million in cash, subject to customary adjustments, plus the assumption of approximately $151 million in outstanding indebtedness.
The Great Lakes Transmission business has a rate base of approximately $219 million, and it consists of 15 transmission stations, 560 kilometers of high and medium voltage 44-230 kV transmission lines, and related infrastructure covering an area of 12,000 square kilometers and connects to Hydro One’s Wawa and Mississagi transmission stations. Upon completion of the transaction, Hydro One will operate approximately 98% of Ontario’s transmission capacity.
The transaction is conditional upon the satisfaction of customary closing conditions, including receipt of Competition Act (Canada) approval and approval of the Ontario Energy Board.