TORONTO, Dec. 19, 2024 /CNW/ - 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.
SOURCE Hydro One Limited
