Feb 14 2008
AltaGas Income Trust today furthered its renewable energy strategy by acquiring four potential run-of-river hydro projects ranging from 6.5 megawatts (MW) to 24 MW for $4.5 million. The projects provide AltaGas with the potential to develop approximately 50 MW of hydroelectric generation in British Columbia.
The transaction involves the purchase of all hydrological and environmental data and engineering and permitting work completed over the last four years, as well as water use applications and land-use permits. David Cornhill, Chairman and CEO of AltaGas said, "Run-of-river is one of the cleanest and most environmentally friendly sources of electricity." He added, "These hydro development opportunities represent another step forward in building our renewable energy strategy. Should all our current development projects proceed, approximately one-third of our power generation capability would be from renewable sources."
AltaGas is a growing renewable energy developer with approximately 175 MW of renewable energy capacity under development or construction, including the Bear Mountain Wind Park in northeast B.C. and six run-ofriver hydro development projects concentrated in southwest B.C.
The four new projects are at various stages of development, with the 14 MW Rainy River project located near Gibson, B.C. in the advanced development stage. Rainy River is expected to be operational as early as 2010. AltaGas anticipates the power from its hydro projects will be sold to B.C. Hydro, through its Clean Power Call process. All of the development projects are subject to various regulatory and environmental approvals. In exchange for the development assets, AltaGas has issued 180,433 special warrants for AltaGas trust units valued at $24.94 per special warrant to Plutonic Power Corporation (TSX: PCC). The special warrants automatically convert to AltaGas units on a one-for-one basis on January 1, 2010.
These assets are consistent with AltaGas' growth plan of continuing to focus on strategic acquisitions that deliver value to its customers and solid returns to unitholders. AltaGas will continue to look for opportunities to diversify its asset mix while maintaining an equal balance between its gas and power businesses. AltaGas Income Trust is one of Canada's largest and fastest growing energy infrastructure organizations. The Trust creates value by acquiring, growing and optimizing gas and power infrastructure, including a focus on renewable energy sources.
AltaGas Income Trust's units are listed on the Toronto Stock Exchange under the symbol ALA.UN. The Trust is included in the S&P/TSX Composite Index, the S&P/TSX Income Trust Index and the S&P/TSX Capped Energy Trust Index.