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Ontario's government-owned power company is making its first foray outside the province, announcing a deal to buy New Jersey-based Eagle Creek Renewable Energy for $388 million.
Ontario Power Generation says Eagle Creek owns 63 small hydropower facilities in the United States providing a total of 216 megawatts of capacity.
The privately held target company's two largest investors are U.S.-based Hudson Clean Energy Partners and a joint venture owned by Power Corp. of Canada and Claridge Inc., an investment firm owned by Canada's Stephen Bronfman family.
Ontario Power says Eagle Creek has about 160 employees and its facilities are located in California, Colorado, Minnesota, Wisconsin, Michigan, Illinois, Maine, Massachusetts, New York, New Jersey, New Hampshire, Vermont and Virginia.
The transaction is expected to close by the end of 2018.
Ontario Power says the investment is being made on behalf of Ontarians but no taxpayer dollars will be used in the purchase; rather, it will be financed through corporate public debt or other credit facilities.
“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," said CEO Jeff Lyash in a statement.
He said the deal will have no impact on Ontario utility bills.