TORONTO, Dec. 19,
2024 /PRNewswire/ - Hydro One Limited (Hydro One)
announced today that its wholly-owned subsidiary, Hydro One
Networks Inc., has entered into an agreement to purchase an
approximately 48 per cent interest in the East-West Tie Limited
Partnership from affiliates of OMERS Infrastructure Management Inc.
(OMERS) and Enbridge Transmission Holdings Inc. (Enbridge). The
East-West Tie Limited Partnership owns the East-West Tie Line, a
450-kilometre, 230 kV double-circuit transmission line, regulated
by the Ontario Energy Board (OEB), spanning from Wawa to Thunder
Bay, along the north shore of Lake
Superior.
Hydro One has agreed to purchase its interest in the partnership
for $257 million in cash, subject to
customary adjustments. The transaction results in a partnership
with the remaining owners of the East-West Tie Line – the
Bamkushwada Limited Partnership, a consortium of six First Nations,
and affiliates of NextEra Energy Canada, LP who own approximately
3.5 per cent and 48 per cent respectively.
"Hydro One has a long history of owning and operating
transmission infrastructure in northern Ontario," said David
Lebeter, President and CEO, Hydro One. "By investing in this
critical transmission infrastructure, we not only support the
reliable delivery of electricity but also contribute to the
long-term economic opportunities and shared prosperity in the
region."
"We are very proud of our 12-year partnership with
co-shareholders and our collaboration with First Nations to develop
and operationalize the East-West Tie," said Michael Hill, Executive Vice President and
Global Head of OMERS Infrastructure. "Hydro One, a prominent
Canadian company that already owns and operates more than 90 per
cent of Ontario's transmission
network, was considered the best strategic partner to support the
company's continued reliable operations."
"Enbridge is pleased to have participated alongside our partners
in developing and bringing into service the East-West Tie project,
with a focus on Indigenous inclusion and participation," said
Matthew Akman, Executive Vice
President, Corporate Strategy and President, Power, Enbridge.
"Enbridge has enjoyed a strong relationship with NextEra, OMERS and
the Bamkushwada Limited Partnership and believe Hydro One's
experience and ownership of other Ontario transmission assets will provide value
to the partnership."
The East-West Tie Line was built in partnership with the
Bamkushwada Limited Partnership, which is jointly owned by Fort
William First Nation, Michipicoten First Nation, Biigtigong
Nishnaabeg (Ojibways of the Pic River First Nation), Pays Plat
First Nation, Netmizaaggamig Nishnaabeg (Pic Mobert First Nation)
and Red Rock Indian Band.
The line has an OEB-approved rate base of approximately
$880 million (100 per cent basis) and
connects northwest Ontario
communities and industries to Ontario's electricity grid. The transaction is
conditional upon satisfaction of customary closing conditions.
CIBC Capital Markets acted as exclusive financial advisor and
Gowling WLG acted as external legal counsel to Hydro One in
connection with the transaction. TD Securities acted as exclusive
financial advisor and Torys LLP acted as external legal counsel to
OMERS and Enbridge in connection with the transaction.
About Hydro One Limited (TSX: H)
Hydro One Limited, through its wholly owned subsidiaries, is
Ontario's largest electricity
transmission and distribution provider with approximately 1.5
million valued customers, approximately $32.8 billion in assets as of December 31, 2023, and annual revenues in 2023 of
approximately $7.8 billion.
Our team of approximately 9,700 skilled and dedicated employees
proudly build and maintain a safe and reliable electricity system
which is essential to supporting strong and successful communities.
In 2023, Hydro One invested approximately $2.5 billion in its transmission and distribution
networks and supported the economy through buying approximately
$2.5 billion of goods and
services.
We are committed to the communities where we live and work
through community investment, sustainability and diversity
initiatives.
Hydro One Limited's common shares are listed on the TSX and
certain of Hydro One Inc.'s medium term notes are listed on the
NYSE. Additional information can be accessed at www.hydroone.com,
www.sedarplus.com or www.sec.gov.
About OMERS
OMERS is a jointly sponsored, defined benefit pension plan, with
1,000 participating employers ranging from large cities to local
agencies, and over 600,000 active, deferred and retired members.
Our members include union and non-union employees of
municipalities, school boards, local boards, transit systems,
electrical utilities, emergency services and children's aid
societies across Ontario. OMERS
teams work in Toronto,
London, New York, Amsterdam, Luxembourg, Singapore, Sydney and other major cities across
North America and Europe – serving members and employers, and
originating and managing a diversified portfolio of high-quality
investments in bonds, public and private credit, public and private
equities, infrastructure and real estate.
About Enbridge
At Enbridge, we safely connect millions of people to the energy
they rely on every day, fueling quality of life through our North
American natural gas, oil and renewable power networks and our
growing European offshore wind portfolio. We're investing in modern
energy delivery infrastructure to sustain access to secure,
affordable energy and building on more than a century of operating
conventional energy infrastructure and two decades of experience in
renewable power. We're advancing new technologies including
hydrogen, renewable natural gas, carbon capture and storage.
Headquartered in Calgary, Alberta,
Enbridge's common shares trade under the symbol ENB on the
Toronto (TSX) and New York (NYSE) stock exchanges. To learn
more, visit us at enbridge.com.
Forward-Looking Information
This press release may contain "forward-looking information"
within the meaning of applicable Canadian securities laws and
"forward-looking statements" within the meaning of applicable U.S.
securities laws (collectively, "forward-looking information").
Statements containing forward-looking information are made pursuant
to the "safe harbour" provisions of applicable Canadian and U.S.
securities laws. Words such as "expect", "anticipate", "intend",
"attempt", "may", "plan", "will", "can", "believe", "seek",
"estimate", and variations of such words and similar expressions
are intended to identify such forward-looking information. These
statements are not guarantees of future performance or actions and
involve assumptions and risks and uncertainties that are difficult
to predict. Therefore, actual outcomes and results may differ
materially from what is expressed, implied or forecasted in such
forward-looking information. Some of the factors that could cause
actual results or outcomes to differ materially from the results
expressed, implied or forecasted by such forward-looking
information, including some of the assumptions used in making such
statements, are discussed more fully in Hydro One's filings with
the securities regulatory authorities in Canada, which are available on SEDAR+ at
www.sedarplus.com. Hydro One does not intend, and it disclaims any
obligation, to update any forward-looking information, except as
required by law.
View original
content:https://www.prnewswire.com/news-releases/hydro-one-expands-transmission-ownership-in-northern-ontario-302336662.html
SOURCE Hydro One Limited