Canadian TC Energy to Sell Ontario Power Plants

Canadian energy infrastructure developer TC Energy said late July 30 it had reached an agreement to sell its interests in three Ontario gas-fired power generating stations to a subsidiary of Ontario Power Generation (OPG) for a total consideration of C$2.87bn (US$2.18bn).

The sale, expected to close in late 2019, will see OPG, a provincial Crown corporation owned by the province of Ontario, acquire the 683-MW Halton Hills power plant just west of Toronto, the 900-MW Napanee generating station, which is nearing completion east of Toronto, and TC Energy’s 50% interest in the 550-MW Portlands Energy Centre in Toronto. OPG owns the other 50% of the facility.

“The sale of these facilities is part of our ongoing efforts to maximise value for our shareholders and fund our industry-leading secured growth program in a disciplined manner,” TC Energy CEO Russ Girling said. “We continue to be a significant private sector power generator in Canada and are committed to the ongoing multi-billion-dollar life-extension program at the Bruce Power nuclear facility in Ontario.”

OPG operates about 16,108 MW of in-service generating capacity in Ontario, most of it from 66 hydroelectric facilities (7,475 MW) and two nuclear stations (5,728 MW).

Its gas-fired portfolio consists of the 2,100-MW Lennox generating station east of Toronto and a half-interest in the 560-MW combined cycle Brighton Beach generating station in Windsor. In June, OPG reached an agreement with Canadian Utilities (CU) to acquire ATCO Power’s 50% interest in the plant, part of a series of transactions which saw CU sell its entire fossil fuel-fired generating portfolio.