Canadian Utilities sells electricity plants for $CA835mn

Canadian Utilities, the Calgary based energy company, has announced an agreement for the sale of its fossil fuel based electricity generation portfolio.

Heartland Generation Ltd., an affiliate of US-based Energy Capital Partners, will pay approximately CA$835mn (US$620.5mn) for Canadian Utilities’ portfolio, with the sale expected to close, subject to regulatory approval and other closing conditions, in the second half of 2019.

“We are impressed by the portfolio’s high-quality assets and strong operating history,” said Tyler Reeder, Managing Partner, Energy Capital Partners. “We look forward to partnering with the portfolio’s talented management team and employees and to continuing to provide a high level of service to the portfolio’s offtakers and customers.”

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The deal includes 11 partly and fully owned electricity generating plants, both coal and natural gas powered, mostly in Alberta, with one each in B.C. and Ontario. Together, the facilities have a generating capacity of approximately 2,100 MW. As reported by CBC, the deal comes after a strategic review the company undertook of its power plants, and leaves it with 250MW of electricity generation across 5 remaining facilities; 1 in Canada, and 2 each in Australia and Mexico.

Siegfried Kiefer, President & Chief Executive Officer, Canadian Utilities, said: “These assets provide reliable and affordable energy to customers across Canada and I want to thank our employees for their commitment and dedication to operating these assets to the highest standards. We are focused on building a globally diversified portfolio of energy-related infrastructure assets. Continually evaluating our business model and strategies ensures we are well-positioned to capture opportunities in markets at home and abroad.”

Canadian Utilities trades on the Toronto Stock Exchange under the symbol “CU”.