AltaGas, an energy infrastructure company, has signed an agreement with TerraForm Power, an affiliate of Brookfield Asset Management, for the sale of its US distributed generation assets portfolio.
The assets are currently held by AltaGas’ subsidiaries WGL Energy Systems, and WGSW. The transaction is expected to be closed in the third quarter of 2019, subject to the customary closing conditions.
Under the transaction agreement, AltaGas is expected to receive total gross proceeds of approximately $940m (£755m).
AltaGas president and chief executive officer Randy Crawford said: “We are firmly focused on enhancing the value of our core asset footprint where we see the most attractive opportunities for long-term, stable earnings growth.
“With today’s announcement, we are very close to achieving our 2019 asset sales target. We continue to execute against our near-term priorities, and I am confident that our 2019 funding and business plan is on track.”
Located in 20 states and in the District of Columbia, the portfolio of US distributed generation assets has a total capacity of 322MW.
It include 291MW commercial and industrial solar assets, 10MW fuel cells and 21MW residential solar assets.
In addition, the portfolio comprises recently constructed assets that have an average remaining power purchase agreement term of nearly 17 years with investment-grade off-takers.
The transaction is part of sales programme targeted for 2019 by AltaGas
AltaGas said that under its asset sales programme targeted for 2019, the company has planned to divest $1.5bn – $2.0bn (£1.2bn – £1.6bn), and the present transaction has helped company achieving approximately $1.3bn (£1.04bn) sale target.
In February 2019, AltaGas has sold its remaining indirect equity stake of approximately 55% in its Northwest British Columbia Hydro Electric Facilities for C$1.37bn (£837m).
The hydroelectric facilities sale included 214MW Forrest Kerr, the 17MW Volcano Creek, and the 72MW McLymont Creek, located in Tahltan First Nation territory.
