Utilities company Fortis has entered an agreement to acquire two-thirds of Teck Resources' interest in the Waneta Dam and related transmission assets in British Columbia for $1.2bn.

Under the deal, Teck Metals will be granted a lease to use Fortis’ interest in the Waneta hydroelectric power plant for 20 years to generate electricity for industrial operations in Trail.

Go deeper with GlobalData

Data Insights

The gold standard of business intelligence.

Find out more

Fortis' president and chief executive officer (CEO) Barry Perry said: “Waneta is a high-quality, renewable energy facility located in an area central to our British Columbia operations, making this acquisition a natural fit with our strategy to increase our investment in sustainable energy.”

Annual payments will start at approximately $75m per year and rise 2% annually. This is equivalent to an initial power price of $40 per megawatt-hour based on 1,880GWh of energy per annum.

In addition, Teck Metals will have an option to extend the lease for an additional ten years at comparable rates.

"This agreement will further strengthen Teck’s balance sheet and provide significant new capital."

Teck's president and chief executive officer (CEO) Don Lindsay said: “This agreement will further strengthen Teck’s balance sheet and provide significant new capital that can be reinvested to grow our overall business.

How well do you really know your competitors?

Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.

Company Profile – free sample

Thank you!

Your download email will arrive shortly

Not ready to buy yet? Download a free sample

We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form

By GlobalData
Visit our Privacy Policy for more information about our services, how we may use, process and share your personal data, including information of your rights in respect of your personal data and how you can unsubscribe from future marketing communications. Our services are intended for corporate subscribers and you warrant that the email address submitted is your corporate email address.

“We have secured a long-term power supply for Trail Operations at competitive, below-market pricing and will invest in innovative projects to further enhance and modernise this facility.”

The Waneta Dam will operate as a non-regulated energy infrastructure subsidiary of Fortis, which will finance the transaction through a combination of cash on hand, debt, and equity.

Subject to customary conditions, and receipt of certain approvals and consents, the closing of the transaction is expected to take place in Q4 of this year.