OPG (Ontario Power Generation) has entered into a settlement to accumulate Cube Hydro, an operator of small and medium-sized hydropower services within the northeast and the southeast U.S.
OPG says the acquisition gives further scale to its current U.S. hydro platform and may generate significant operational synergies between the two platforms, together with enhanced alternatives for additional capital deployment.
“OPG has important hydroelectric experience in Ontario and within the U.S., so buying this portfolio of diversified, excessive-high quality, lengthy-life belongings represents a pure fit for us,” mentioned OPG’s Ken Hartwick, president, and chief executive officer. “That is additionally a chance to develop our income base over the long run and supply elevated returns to our Shareholder, the Province of Ontario.”
This funding will likely be financed primarily utilizing OPG’s company public debt program or different accessible credit score services. Goldman Sachs & Co. LLC acted as a monetary advisor to OPG on the acquisition. The transaction is topic to plain regulatory approvals. As soon as the acquisition is finalized, Cube Hydro will function as a part of OPG’s U.S. hydroelectric platform. OPG expanded to the U.S. utilizing its acquisition of Eagle Creek Renewable Energy in November 2018.
Cube Hydro was established in 2014 and operated 19 hydropower facilities, offering 385 MW of in-service capability at amenities in New York, Pennsylvania, Virginia, West Virginia and North Carolina. Its enterprise worth is US$1,123 million, topic to customary working capital and different changes on closing.
OPG produces about half of the electrical energy Ontarians depend on day by day, and its transparent, secure energy prices a mean of 40% lower than different mills within the province, in response to a press launch.