Hydro One to acquire Great Lakes Power Transmission
January 29, 2016 | By Renée Francoeur
January 29, 2016 – Hydro One has announced that it has entered into a purchase agreement to acquire various entities that own and control Great Lakes Power Transmission from Brookfield Infrastructure. Great Lakes Power Transmission is an Ontario regulated electricity transmission business operating along the eastern shore of Lake Superior, north and east of Sault Ste. Marie. The purchase agreement is for $222 million in cash, Hydro One says, subject to customary adjustments, plus the assumption of approximately $151 million in outstanding indebtedness.
“Following Hydro One’s successful IPO and the recent acquisition of three Local Distribution Companies, this transaction is further testament to the people and potential of Hydro One”, said Mayo Schmidt, president and CEO of Hydro One Limited.
The Great Lakes Transmission business has a rate base of approximately $219 million, according to Hydro One, and it consists of 15 transmission stations, 560 km of high- and medium-voltage 44-230 kV transmission lines and related infrastructure covering an area of 12,000 square km and connects to Hydro One’s Wawa and Mississagi transmission stations. Upon completion of the transaction, Hydro One says it will operate approximately 98% of Ontario’s transmission capacity.
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