AltaGas divests majority stake in B.C. hydro projects for CAD1.4 billion

AltaGas Ltd. is slashing its dividend by 56 per cent and selling its remaining majority stake in a B.C. hydroelectric power operation for CAD1.39 billion (US$1.2 billion).

The company will now pay a monthly dividend of eight cents per share, down from 18.25 cents per share.

The cut to its payments to shareholders came as AltaGas announced plans to sell its remaining 55 per cent in the Northwest Hydro Facilities to a joint venture that is controlled by Axium Infrastructure Inc. and Manulife Financial Corp.

The Northwest BC Hydro Electric Facilities portfolio includes the 195 MW Forrest Kerr Hydroelectric Facility, operational since October 2014; the 16 MW Volcano Creek Hydroelectric Facility, operational since December 2014; and the 66 MW McLymont Creek Hydroelectric Facility, operational since October 2015. The hydropower plants (HPPs) sell their output under separate 60-year, fully indexed electricity purchase agreements with BC Hydro.

AltaGas sold a 35 per cent stake in the operation to the same joint venture earlier in 2018.