OTTAWA, July 29, 2015 /CNW/ - Hydro Ottawa (under its subsidiary, Energy Ottawa) is pleased to announce that it has acquired 10 run-of-the-river hydroelectric facilities from Fortis Inc., in Ontario and nearby New York State; representing approximately 30.9 megawatts of installed operating green energy capacity.
Hydro Ottawa was already the largest municipally-owned producer of green energy in Ontario with a generation capacity of 48 megawatts (enough to power 40,000 homes a year). The acquisition aligns with Hydro Ottawa's 2012-2016 Strategic Direction to increase the utility's supply of clean energy to customers, and by pursuing low risk opportunities with stable long-term returns. Prior to the acquisition, extensive due diligence was conducted by Hydro Ottawa and BMO Capital Markets was retained as its exclusive financial advisor for the transaction.
Hydro Ottawa's renewable energy generation business proved a significant source of revenue for the company in 2014, generating nearly $20 million in revenue. In the span of three years, Hydro Ottawa has tripled its green generating capacity and diversified its revenue streams. This acquisition comes after the company's 2014 announcement of a 40-year contract with the former Ontario Power Authority (now merged with the Independent Electricity System Operator) to expand its Chaudière Falls site with a new 29 megawatt facility.
The newly-acquired Ontario assets are connected to the provincial electricity grid, while the assets in New York State provide synergies with Hydro Ottawa's existing generation operations due to their close proximity to Ottawa.
- This acquisition will have no impact on electricity rates for Hydro Ottawa customers.
- Hydro Ottawa's existing portfolio includes six run-of-the-river hydroelectric generation plants at Chaudière Falls, and majority shares in landfill gas-to-energy facilities at the Trail Road landfill site in Ottawa and the Laflèche landfill site in Moose Creek, Ontario.
- The New York State assets have a combined operating capacity of 22.6 megawatts and are located in Lyons Falls, Dolgeville, Philadelphia and Diana.
- The Ontario assets have a combined operating capacity of 8.3 megawatts and are located in Ottawa, Rideau Lakes, Kingston (2), Gananoque and South Crosby.
- Run-of-the-river hydroelectric facilities have minimal impact on the environment because they don't produce pollution or greenhouse gases. Instead they rely on the natural flow of their water source, and can generate power 24 hours a day, seven days a week, all year long.
"We want to increase renewable generation capacity and provide earnings that benefit our shareholder, the City of Ottawa, in an environmentally responsible way. After significant due diligence, risk evaluation, and a thorough technical assessment of all assets, we concluded that this was an excellent business opportunity that wisely builds upon our existing generation assets portfolio."
- Bryce Conrad, President and Chief Executive Officer
"Hydro Ottawa is an industry leader when it comes to identifying and investing in innovative growth opportunities. This acquisition of clean, sustainable run-of-the-river hydroelectric facilities in our own backyard and with our neighbours across the border shows vision, coupled with long-term responsible planning on behalf of the City of Ottawa."
- Jim Durrell, C.M., Chair, Board of Directors
About Hydro Ottawa
Hydro Ottawa's core businesses are delivering electricity, generating renewable power and providing energy conservation/management services. Hydro Ottawa is a community-owned, private company, delivering electricity to more than 319,500 customers in Ottawa and Casselman. It is the largest municipally-owned producer of green power in the province, with hydroelectric and landfill gas-to-energy generating facilities. Hydro Ottawa Holding Inc. (Hydro Ottawa) owns and operates two subsidiary companies, Hydro Ottawa Limited and Energy Ottawa Inc.
SOURCE Hydro Ottawa Holding Inc.
For further information: Rebecca Hickey, Supervisor, Media and Public Affairs, Hydro Ottawa, Tel: 613-738-5499 ext. 345, [email protected], www.hydroottawa.com