TransCanada agrees to buy 9 Ontario solar projects for nearly $470MM

Source: TransCanada Corporation

TransCanada Corporation (NYSE: TRP) (TransCanada) has agreed to purchase nine Ontario solar projects from Canadian Solar Solutions Inc., with a combined capacity of 86 megawatts (MW), for approximately $470 million. All nine projects have 20-year power purchase agreements with the Ontario Power Authority.

"The addition of these solar projects allows us to expand and add to our diverse power generating portfolio where a third of the power we own, or have interests in, comes from alternative or renewable energy sources," said Russ Girling, TransCanada's president and chief executive officer. "Upon close of this acquisition, this low-risk investment is expected to be immediately accretive to earnings and cash flow."

Under the terms of the agreement, each of the nine solar projects will be developed and constructed by Canadian Solar Solutions Inc. utilizing their photovoltaic panels. TransCanada will purchase each project after it begins commercial operation and subject to certain milestones being met. Subject to regulatory approvals, TransCanada anticipates the projects will come into service between late 2012 and mid-2013. These projects will complement TransCanada's existing operations in Ontario where it has become the largest independent power producer in the province.

TransCanada currently operates the largest wind farm in Canada, and the largest wind farm in New England. Its hydro electric facilities span three states in New Hampshire, Massachusetts and Vermont. TransCanada is also a partner in Canada's first private nuclear generator which currently produces 4,700 MW of emission-free electricity in Ontario.

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