OPG Finalizes Acquisition Of Cube Hydro

U.S. hydro portfolio will deliver greater financial return for Ontarians

TORONTO, Oct. 8, 2019 /PRNewswire/ - Ontario Power Generation (OPG) has finalized the acquisition of Cube Hydro Partners and Helix Partners (collectively "Cube Hydro"), an owner and operator of small and medium-sized hydropower facilities located in the northeast and southeast United States, from I Squared Capital, an infrastructure-focused private equity firm. Eagle Creek and Cube Hydro will be combined to form OPG's U.S. hydro platform.

"The acquisition of Cube Hydro builds on our 2018 purchase of Eagle Creek Renewable Energy," said Ken Hartwick, OPG President and CEO. "These high quality, clean generation assets provide additional scale to OPG's existing U.S. hydro portfolio."

"The Cube Hydro portfolio represents an attractive opportunity to enhance our hydro platform adding a team and assets that are well aligned with OPG's long-term growth strategy in the United States," said Eli Smith, President and CEO of OPG's U.S. hydro platform companies. "Cube Hydro prides itself on safety, compliance, innovation and social responsibility, all of which align closely with Eagle Creek and OPG's core values."

Goldman Sachs & Co. LLC acted as a financial advisor and Dentons served as legal counsel to OPG on the acquisition. Centerview Partners acted as financial advisor and Sidley Austin LLP, Troutman Sanders LLP, and Davis Polk & Wardwell LLP served as legal counsel to I Squared Capital on this transaction.

Key Facts on OPG's U.S. hydro platform:

    --  The Cube Hydro purchase adds 19 additional hydroelectric facilities in
        five states to OPG's hydro platform. This brings the total to 85 hydro
        generating stations in the United States, representing 619 megawatts of
        capacity. In addition, the companies own minority interests equivalent
        to approximately 10 megawatts in thirteen other hydroelectric facilities
        and two solar facilities in New England.
    --  Facilities are located across the United States primarily in the
        Southeast, New England, Mid-Atlantic and Midwest power markets.
    --  Offices are located in New Jersey, Maryland, North Carolina, Wisconsin
        and Massachusetts.
    --  OPG's U.S. hydro platform's environmental profile is well positioned for
        continued de-carbonization of the electricity industry.
    --  Enhanced returns for Ontarians, providing stable cash flows for
        generations to come, with no impact on electricity bills.

The U.S. hydroelectric platform will continue to operate independently as a wholly owned subsidiary of OPG, with its own Board of Directors and management team. Its financial results will be consolidated into OPG's financial results.

OPG is the largest electricity generator in the province, providing almost half the power Ontarians rely on every day. It is also one of the most diverse generators in North America with expertise in nuclear, hydro, biomass, solar and gas.

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SOURCE Ontario Power Generation Inc.