TransCanada Reaches Agreement to Sell Coolidge Generating Station for US$465 Million
December 17 2018 - 6:30AM
News Release – TransCanada Corporation (TSX:TRP) (NYSE:TRP)
(TransCanada) today announced that it has entered into an agreement
to sell its Coolidge Generating Station to SWG Coolidge Holdings,
LLC, a wholly owned subsidiary of Southwest Generation Operating
Company, LLC, for approximately US$465 million (Cdn$623 million),
subject to closing adjustments and customary regulatory approvals.
Located in Coolidge, Arizona, the Coolidge Generating Station is a
575-megawatt natural gas-fired power facility that is underpinned
by a long-term power purchase agreement (PPA).
“The sale of Coolidge is part of our ongoing
efforts to maximize value for our shareholders and fund our
industry leading growth program in a disciplined manner,” said Russ
Girling, president and chief executive officer of TransCanada.
When combined with the sale of Cartier Wind and
the reimbursement of pre-development costs on the Coastal GasLink
pipeline project earlier this year, we expect to realize
approximately $1.7 billion that will be used to help fund our
near-term capital program.
“Looking forward, we expect our strong operating
and financial performance to continue and believe we are
well-positioned to fund $36 billion of commercially secured
projects, approximately $10 billion of which are expected to enter
service by early 2019 with the remainder to follow through 2023,”
Girling said.
Under the terms of the PPA, Salt River Project
Agricultural Improvement and Power District, the counterparty to
the agreement, has a right of first refusal on a sale to a third
party, which will determine next steps in the sale and closing
process.
Following the sale of Coolidge, TransCanada will
continue to be one of Canada’s largest private sector power
generators with a portfolio of critical energy infrastructure
assets that includes investment in nine low-emission power plants
and the Bruce Power nuclear facility, with a generating capacity of
more than 6,000 megawatts.
With more than 65 years' experience, TransCanada
is a leader in the responsible development and reliable
operation of North American energy infrastructure including natural
gas and liquids pipelines, power generation and gas storage
facilities. TransCanada operates one of the largest natural gas
transmission networks that extends more than 91,900 kilometres
(57,100 miles), connecting major gas supply basins to markets
across North America. TransCanada is a leading provider of gas
storage and related services with 653 billion cubic feet of storage
capacity. A large independent power producer, TransCanada currently
owns or has interests in more than 6,000 megawatts of power
generation in Canada and the United States. TransCanada is also the
developer and operator of one of North America’s leading liquids
pipeline systems that extends approximately 4,900 kilometres (3,000
miles), connecting growing continental oil supplies to key markets
and refineries. TransCanada’s common shares trade on the Toronto
and New York stock exchanges under the symbol TRP. Visit
TransCanada.com to learn more, or connect with us on
social media.
FORWARD-LOOKING INFORMATION
This publication contains certain information
that is forward-looking and is subject to important risks and
uncertainties (such statements are usually accompanied by words
such as "anticipate", "expect", "believe", "may", "will", "should",
"estimate", "intend" or other similar words). Forward-looking
statements in this document are intended to provide TransCanada
security holders and potential investors with information regarding
TransCanada and its subsidiaries, including management's assessment
of TransCanada's and its subsidiaries' future plans and financial
outlook. All forward-looking statements reflect TransCanada's
beliefs and assumptions based on information available at the time
the statements were made and as such are not guarantees of future
performance. Readers are cautioned not to place undue reliance on
this forward-looking information, which is given as of the date it
is expressed in this news release, and not to use future-oriented
information or financial outlooks for anything other than their
intended purpose. TransCanada undertakes no obligation to update or
revise any forward-looking information except as required by law.
For additional information on the assumptions made, and the risks
and uncertainties which could cause actual results to differ from
the anticipated results, refer to the Quarterly Report to
Shareholders dated October 31, 2018 and 2017 Annual Report filed
under TransCanada's profile on SEDAR at www.sedar.com and with the
U.S. Securities and Exchange Commission at www.sec.gov.
Media Inquiries:Jennifer
Link / Terry Cunha403.920.7859 or 800.608.7859
TransCanada Investor & Analyst
Inquiries:David Moneta / Duane Alexander403.920.7911 or
800.361.6522
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