The assests represent approximately 30.9 megawatts of installed operating green energy capacity. The newly-acquired Ontario assets are connected to the provincial electricity grid, while the assets in New York State provide synergies with Hydro Ottawa’s existing generation operations due to their close proximity to Ottawa.
This acquisition comes after the company’s 2014 announcement of a 40-year contract with the former Ontario Power Authority, now merged with the Independent Electricity System Operator, to expand its Chaudière Falls site with a new 29 megawatt facility.
Hydro Ottawa was already the largest municipally-owned producer of green energy in Ontario with a generation capacity of 48 MW, enough to power 40,000 homes a year.
The acquisition aligns with Hydro Ottawa’s 2012-2016 Strategic Direction to increase the utility’s supply of clean energy to customers, and by pursuing low risk opportunities with stable long-term returns. Prior to the acquisition, extensive due diligence was conducted by Hydro Ottawa and BMO Capital Markets was retained as its exclusive financial advisor for the transaction.
Hydro Ottawa’s renewable energy generation business proved a significant source of revenue for the company in 2014, generating nearly $20 million in revenue. In the span of three years, Hydro Ottawa has tripled its green generating capacity and diversified its revenue streams.