OPG subsidiary reaches agreement with affiliates of TC Energy to acquire natural gas assets

Ontario Power Generation (OPG), under a new subsidiary, has entered into a purchase agreement with affiliates of TC Energy (formerly TransCanada Corporation) to acquire a portfolio of combined-cycle natural gas-fired plants in Ontario.

Total purchase price for this acquisition is CAD2.87 billion (US$2.18 billion) subject to customary closing adjustments. The transaction is also subject to receipt of standard regulatory approvals. Future profits generated from these assets will stay in Ontario for the benefit of Ontarians. RBC Capital Markets acted as a financial advisor to OPG on this transaction.

Acquiring portfolio of combined-cycle natural gas-fired plants in Ontario from affiliates of TC Energy:

• 100% ownership of Napanee Generating Station (900 MW)
• 100% ownership of Halton Hills Generating Station (683 MW)
• Remaining 50% ownership of Toronto’s Portlands Energy Centre (50% of 550 MW)

In addition to these assets, OPG entered into a purchase and sale agreement with affiliates of Canadian Utilities Limited in June to acquire the remaining 50% interest in the 560 MW combined-cycle natural gas-fired Brighton Beach Generating Station. OPG already owns 50% of the Brighton Beach Generating Station.

OPG is the largest electricity generator in the province, providing almost half the power Ontarians rely on every day. It is also one of the most diverse generators in North America with expertise in nuclear, hydro, biomass, solar and gas.