Fortis Inc has agreed to sell its 51% stake in the Waneta Expansion Hydroelectric Project in British Columbia to Columbia Power Corporation (CPC) and Columbia Basin Trust (CBT) for approximately $1 billion. CPC and CBT are currently partners with Fortis and together own 49% of the Waneta Expansion.
"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," said Barry Perry, President and Chief Executive Officer, Fortis. "This transaction completes the asset sale funding component of our five-year capital investment plan."
Fortis expects the transaction to close within 90 days. Closing is subject to the satisfaction of customary closing conditions for a transaction of this nature and the receipt of routine approvals.
With its partners, Fortis constructed the 335MW 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% 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.
