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AltaGas sells 35% of B.C. hydro operation, will remain majority owner

AltaGas' 195-megawatt Forrest Kerr hydroelectric project in Northwest B.C. Photo by AltaGas
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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.

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