Hydro Ottawa Acquires 10 Run-of-the-River Hydroelectric Facilities
The10 hydroelectric facilities, acquired from Fortis Inc., in Ontario and nearby New York State, represent 30.9 megawatts of installed operating green energy capacity. 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.
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, Hydro Ottawa conducted extensive due diligence.
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. This acquisition comes after the company’s 2014 announcement of a 40-year contract with the former Ontario Power Authority (now merged with the Independent Electricity System Operator) to expand its Chaudière Falls site with a new 29 megawatt facility.
The just-purchased Ontario assets are located in Ottawa, Rideau Lakes, Kingston (2), Gananoque and South Crosby. The New York State assets are located in Lyons Falls, Dolgeville, Philadelphia and Diana.
Run-of-the-river hydroelectric facilities have minimal impact on the environment because they don’t produce pollution or greenhouse gases. Instead they rely on the natural flow of their water source, and can generate power 24 hours a day, seven days a week, all year long.
