Fortis to sell its interest in the Waneta Expansion hydroelectric project in British Columbia

Fortis Inc. has entered into a definitive agreement with Columbia Power Corporation (CPC) and Columbia Basin Trust (CBT) to sell its 51% interest in the Waneta Expansion Hydroelectric Project in British Columbia for approximately $1 billion. CPC and CBT are currently partners with the Corporation and together own 49% of the Waneta Expansion.

As previously disclosed, the Corporation 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 the Corporation's dividend reinvestment plan and $1 to $2 billion of proceeds from non-core asset sales.

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 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% 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.