Ontario Power Generation (OPG) has finalized its acquisition of hydropower operator Eagle Creek Renewable Energy for $298m from affiliates of Hudson Clean Energy Partners and other shareholders.
Image: Eagle Creek operates 63 small hydropower facilities in the US. Photo: courtesy of CNW Group/Ontario Power Generation Inc.
The acquisition of the New Jersey-based Eagle Creek, which was announced in August 2018, marks the entry of the Ontario government-owned OPG in the US market.
Eagle Creek, which was founded in 2010, operates 63 small hydropower facilities across 13 US states that have a combined capacity of 216MW. The hydropower assets are mainly located in the New England, New York and Midwest power markets.
Built across 45 waterways, Eagle Creek’s hydropower plants sell electricity within six power pools. Put together, the facilities generate around 920 million kilowatt-hours (kwh) of electricity per year, which is enough to power around 110,000 homes.
The US firm is also constructing a new unit at its 11.75MW Swinging Bridge hydro project on the Mongaup River that is expected to generate 1,100kW and five million kwh of power beginning in 2019.
OPG said that in comparison, its 66 Ontario hydropower plants deliver an in-service capacity of 7.47GW.
The Canadian utility said that the US hydropower firm will continue to operate as a stand-alone entity and will be its wholly-owned subsidiary while having its own board of directors and management team. Eagle Creek has nearly 160 employees located in the US.
The financial results of the company will be consolidated into OPG’s financial results.
According to OPG, the investment in Eagle Creek will not have an impact on electricity bills in Ontario. Further, the acquisition is anticipated to have a positive impact on the financials of the Canadian utility and will generate income for the Ontario public.
The company said that the investment on behalf of Ontarians in the US hydropower firm will be financed either through its corporate public debt program or other available credit facilities.
OPG renewable generation business president Mike Martelli said: “As Ontario’s largest electricity generator, we have been stewards of hydropower assets for more than a century and we are proud to continue that legacy with this acquisition.
“We look forward to a path of continued growth and success with Eagle Creek.”