OPG subsidiary plans to buy gas-fired generation from TC Energy
Ontario Power Generation announced in late July that a new subsidiary had entered into an agreement to buy a portfolio of combined-cycle natural gas-fired plants in Ontario from affiliates of TC Energy, formerly TransCanada Corporation.
Ken Hartwick, OPG’s President and CEO, said, “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. 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. RBC Capital Markets acted as a financial advisor to OPG on this transaction. OPG notes that “Future profits generated from these assets will stay in Ontario for the benefit of Ontarians.”
The portfolio includes:
• 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% interest in the 560MW combined-cycle natural gas-fired Brighton Beach Generating Station. OPG already owns 50% of the Brighton Beach Generating Station.