Ontario’s government owned power company, Ontario Power Generation (OPG), has announced a $388mn deal to acquire US-based Eagle Renewable Energy, CBC reports.
Eagle Creek owns 63 small hydropower facilities in the US which delivers 216 megawatts of capacity.
Ontario Power claims Eagle Creek has approximately 160 employees with facilities operating in the US states of; California, Colorado, Minnesota, Wisconsin, Michigan, Illinois, Maine, Massachusetts, New York, New Jersey, New Hampshire, Vermont and Virginia.
OPG CEO Jeff Lyash said via The Globe and Mail: “By expanding our core business with this purchase, OPG is capitalizing on a new growth opportunity by making an investment in a strategic set of hydroelectric assets that will produce an attractive return for our shareholder, the Province of Ontario.”
The power firm has stated that the investment has been made on behalf of its residents and will be funded through corporate public debt or other credit facilities rather than through the taxpayer.
“This acquisition will be financed without the use of taxpayer funds and will have no impact on Ontario’s electricity customers,” he continued.
It is anticipated that the transaction will be completed before the end of 2018.