Hydro One to Acquire Brookfield Infrastructure’s Great Lakes Power Electricity Transmission Business
Feb, 17 2016
Hydro One Inc. has entered into a purchase agreement to acquire from Brookfield Infrastructure 15 transmission stations, 560 kilometres of high and medium voltage 44-230 kV transmission lines, and related infrastructure covering an area of 12,000 square kilometres. The business connects to Hydro One’s Wawa and Mississagi transmission stations. Upon completion of the transaction, Hydro One will operate approximately 98% of Ontario’s transmission capacity.
The business, Great Lakes Power Transmission LP, operates along the eastern shore of Lake Superior, north and east of Sault Ste. Marie. It connects to Hydro One’s Wawa and Mississagi transmission stations.
The purchase is being made for $222 million in cash, subject to customary adjustments, plus the assumption of approximately $151 million in outstanding indebtedness. The Great Lakes Transmission business has a rate base of approximately $219 million.
The transaction is conditional upon the satisfaction of customary closing conditions, including receipt of Competition Act (Canada) approval and approval of the Ontario Energy Board.
