AltaGas signs distribution deal with BC Hydro

Energy

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Just two days after its friendly take over of Pacific Northern Gas, AltaGas has signed a electricity purchase agreement with BC Hydro.

The deal covers the McLymont Creek and Volcano Creek run-of-river hydroelectric projects. Both are in the traditional territory of the Tahltan First Nation.

Along with a third project,  know as Forest Kerr,  the three projects will total approximately 277 megawatts and are known as “the Northwest Projects.”   The three  will be the anchor tenants for the Northwest Transmission Line, which will upgrade the hydro infrastruture of northern western British Columbia.

 David Cornhill, Chairman and Chief Executive Officer of AltaGas said in a news release

“With a combined capacity of approximately 82 MW the McLymont Creek and Volcano Creek projects, in addition to our 195 MW Forrest Kerr project, represent a $1 billion investment in British Columbia,”. “These three projects align with our strategy of adding low-risk, long-life assets as we continue to build long-term contracted assets that will generate power and deliver strong shareholder value for generations to come.”

The news release also says:

The Northwest Projects will be constructed solely within Tahltan Nation traditional territory. AltaGas and the Tahltan Nation have signed IBAs for all three projects and have established a strong working relationship that will provide the people of the Tahltan Nation with employment, business opportunities, and economic participation. Once completed, the projects will provide enough electricity for approximately 95,000 homes in British Columbia and will offset more than 780,000 tonnes of greenhouse gas equivalents annually.

Cornnhill said the hyro projects will generate more than 400 direct jobs during construction. He added there will be a lot of indirect economic benefits resulting from increased business activities in the area. “Not only will our Northwest Projects help support government job creation strategies but they will also provide much needed power to BC Hydro, which will allow them to meet the growing demand for power in the northwest.”
In a second news release, AltaGas said it will issue 4.27 million common shares to a syndicate of underwriters, co-led by TD Securities Inc. and RBC Capital Markets, at $29.30 per share, bringing the company approximately $125 million to be used to repay debt and for general corporate purposes.