CALGARY, A.B. – AltaGas Ltd. says it has an agreement to sell 35 percent of its interest in a B.C. hydroelectric operation for $922 million but will remain the majority owner of the power generation facilities.
Located in Tahltan First Nation territory, the Facilities are comprised of the 195-megawatt Forrest Kerr Hydroelectric Facility which achieved commercial operation in October 2014, the 16-megawatt Volcano Creek Hydroelectric Facility, and the 66-megawatt McLymont Creek Hydroelectric Facility.
AltaGas says the facilities had a total capital cost of approximately $1 billion, and are underpinned by three separate 60-year, fully indexed electricity purchase agreements with BC Hydro.
The buyer is a joint venture company indirectly owned by Axium Infrastructure Inc. and Manulife Financial Corp.
Calgary-based AltaGas says the sale is part of a larger funding strategy related to a previously announced acquisition.