TC Energy selling power plant assets to Ontario Power Generation for $2.87B

CALGARY – TC Energy Corp. says it is selling two Ontario natural gas-fired power plants and a 50% interest in a third to a subsidiary of Ontario Power Generation Inc. for about $2.87 billion.

The deal through its wholly owned subsidiary, TransCanada Energy Ltd., includes the 683-megawatt Halton Hills power plant, the 900-MW Napanee generating station (which is nearing completion) and TC Energy’s 50% interest in the 550-MW Portlands Energy Centre in Toronto.

TC Energy CEO Russ Girling says the sales will deliver value for shareholders and fund the Calgary-based company’s growth program.

When combined with the earlier Coolidge, Northern Courier and U.S. Midstream asset sales, TC Energy now expects to realize approximately $6.3 billion from divestitures so far this year, it said.

Ontario Power Generation CEO Ken Hartwick says the natural gas generation will play a role in maintaining system reliability for Ontario’s largest electricity generator as intermittent wind and solar generation is added.

OPG says it struck a deal earlier this year to buy the 50% interest it didn’t already own in the 560-MW combined-cycle natural gas-fired Brighton Beach Generating Station from Calgary-based Canadian Utilities Ltd.

The TC Energy transaction is expected to close in late 2019 subject to regulatory approvals and Napanee reaching commercial operations.