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Hydro Ottawa acquires 10 hydroelectric facilities from Fortis

Staff writer |
Hydro Ottawa, under its subsidiary, Energy Ottawa, has acquired 10 run-of-the-river hydroelectric facilities from Fortis Inc., in Ontario and nearby New York State; representing approximately 30.9 megawatts of installed operating green energy capacity.

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Hydro Ottawa was already the largest municipally-owned producer of green energy in Ontario with a generation capacity of 48 megawatts (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.

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.

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