TC Energy has sold its interests in three Ontario natural gas-fired power plants for $2.8 billion, prior to post-closing adjustments, Kallanish Energy reports.
The buyer is Atura Power, a subsidiary of government-owned Ontario Power Generation.
The facilities include the 683-megawatt Halton Hills power plant, the 900-megawatt Napanee generating station and TC Energy’s 50% stake in Toronto’s 550-megawatt Portlands Energy Center.
All three facilities are combined cycle operations.
OPG president and CEO Ken Hartwick said in a statement: “Natural gas is the enabler of renewable energy and provides the flexibility required to ensure a reliable electricity system.”
Atura will also be operating a fourth gas-fired plant in Ontario: the 560-megawatt Brighton Beach generating station.
Completing the sale strengthens TC Energy’s financial position and will help fund its capital program, said president and CEO Russ Girling in a statement.
The Alberta-based pipeline company said it has realized $6.2 billion from portfolio divestment in the last year, it said.
It still has six low-emission natural gas-fired power plants and one nuclear plant that provides 30% of Ontario’s electricity. The company is planning to invest $2.4 billion by 2023 to extend the life of the Bruce Power nuclear facility with another$5.8 billion to be spent later.
This post appeared first on Kallanish Energy News.