By Jamie Barrie T ransCanada is back in the headlines again after announcing that it would be suspending its applica- tion for the Energy East Pipeline, which would take crude from Canada’s oil heartland of Alberta and send it to eastern refineries and a marine terminal in Saint John offering the opportunity for Canadian producers to ask for higher prices for their landlocked product which currently trades at a discount to the West Texas Intermediate bench- mark. Well this new announcement by TransCanada is not about oil, but it is about another energy source as they have signed a deal to sell its Ontario solar portfolio for $540 million to a subsidiary of Axium Infrastructure Canada II Limited Part- nership. The over half a billion dollar deal included the assets of eight facilities with a total generating capacity of 76 mega- watts or about 1% of the company’s portfolio as TransCan- ada will still own or have interests in 6,200 megawatts of power generation in Canada and the United States. TransCanada chief executive, Russ Girling says the proceeds from this sale will help fund the company’s $24-billion near- term capital program and that the deal is expected to close by the end of the year, subject to regulatory and other approvals as well as customary closing adjustments.
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OCTOBER 2017 • SPOTLIGHT ON BUSINESS MAGAZINE
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