Canadian Energy Company Sells Fossil Power Assets

Canadian Utilities (CU), a unit of Calgary-based Atco Group, said May 27 it has reached an agreement to sell its entire fossil-fueled generating business for C$835mn (US$621mn), concluding a strategic evaluation it launched in September 2018.

The agreement, with Heartland Generation, an affiliate of Energy Capital Partners, includes 11 partly- or fully-owned natural gas- and coal-fired generating stations in Alberta, BC and Ontario. Together, the stations have combined generating capacity of about 2,100 MW.

Energy Capital Partners, through various affiliates, owns more than 165 power plants in the US, with total generating capacity of more than 45,000 MW.

The sale is expected to close in 2H 2019, subject to the receipt of regulatory approvals and satisfaction of other customary closing conditions.

In a separate transaction, CU has agreed to sell its 50% ownership interest in the 260 MW gas-fired Cory cogeneration station, outside Saskatoon, Saskatchewan, to SaskPower International.