TC Energy Corp. says it has entered into an agreement through its wholly-owned subsidiary, TransCanada Energy Ltd., to sell interests in three Ontario natural-gas-fired power plants to a subsidiary of Ontario Power Generation Inc. for approximately $2.87 billion.
The company said the facilities include the 683-megawatt Halton Hills power plant, the 900-megawatt Napanee generating station, which is nearing completion, and TC Energy’s 50 per cent interest in the 550-megawatt Portlands Energy Centre.
It said the transaction is expected to close in late 2019 subject to a number of conditions, which include regulatory approvals and Napanee reaching commercial operations as outlined in the agreement.
“The sale of these facilities is part of our ongoing efforts to maximize value for our shareholders and fund our industry-leading secured growth program in a disciplined manner,” said Russ Girling, TC Energy president and chief executive officer, in a news release.
“We continue to be a significant private sector power generator in Canada and are committed to the ongoing multibillion-dollar life-extension program at the Bruce Power nuclear facility in Ontario. In addition, we remain interested in new low-risk investment opportunities in the electricity sector within our core North American markets.”
When combined with the Coolidge, Northern Courier and U.S. Midstream asset monetizations, TC Energy expects to realize approximately $6.3 billion from portfolio management activities in 2019 that will be used to help fund its near-term capital program and further strengthen its financial position, it said.
“Looking forward, we expect our strong operating and financial performance to continue as we are well-positioned to fund our $30 billion secured capital program with a focus on per share measures and in a manner consistent with achieving targeted credit metrics in 2019 and thereafter,” said Girling.