OTTAWA (dpa-AFX) - Fortis Inc. (FTS, FTS.TO) said that consistent with its capital investment funding strategy, it has entered into a definitive agreement with Columbia Power Corporation or CPC and Columbia Basin Trust or CBT to sell its 51 percent interest in the Waneta Expansion Hydroelectric Project in British Columbia for approximately $1 billion.
CPC and CBT are currently partners with Fortis and together own 49 percent of the Waneta Expansion.
Fortis expects to fund its $17.3 billion five-year capital investment plan at its North American regulated utility business with cash from operations, debt raised at its utilities, common equity from its dividend reinvestment plan, and $1 billion o $2 billion of proceeds from non-core asset sales.
'The sale of our interest in the Waneta Expansion helps finance the substantial growth occurring in our regulated utility business, including growth in British Columbia. This transaction completes the asset sale funding component of our five-year capital investment plan,' said Barry Perry, President and Chief Executive Officer of Fortis. Fortis said it expects the transaction to close within 90 days.
With its partners, Fortis constructed the 335-MW hydroelectric generating facility expansion ahead of time and on budget and, through FortisBC Inc., has operated the facility since it went into production in 2015. CPC and CBT are both 100 percent owned by the Government of British Columbia.
FortisBC will continue to operate the Waneta Expansion facility and purchase its surplus capacity.
RBC Capital Markets acted as the exclusive financial advisor to Fortis.
Copyright RTT News/dpa-AFX
© 2019 AFX News
