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Fortis sells stake in British Columbia hydro plant

Published 2019-01-28, 07:34 a/m
© Reuters.  Fortis sells stake in British Columbia hydro plant
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Jan 28 (Reuters) - Canadian energy company Fortis Inc FTS.TO said on Monday it would sell its 51 percent stake in the Waneta Expansion hydroelectric plant in British Columbia to two public sector partners for about C$1 billion, and plans to use the proceeds for its five-year investment plan.

Columbia Power Corp and Columbia Basin Trust will buy Fortis' stake in the facility, which built a second powerhouse for the Waneta Dam four years ago.

Fortis, which has operated the 335 mega-watt facility since it began production in 2015, will continue to operate the facility and purchase its surplus capacity, it said in a statement.

The funds go toward Fortis' $17.3 billion five-year capital investment plan for its North American regulated utility business, for which it has also said it may issue new debt.

"This transaction completes the asset sale funding component of our five-year capital investment plan," Fortis Chief Executive Officer Barry Perry said.

The company expects the deal to close within 90 days.

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