Tuesday, September 13, 2011

Enbridge shifts renewable energy projects to affiliate

One of Enbridge Inc.'s separately-traded sister companies recently approved a deal to buy three renewable energy projects for $1.23 billion CAD from the parent company. Under the deal, Enbridge Income Fund Holdings Inc. will buy ownership of the Ontario Wind, Sarnia Solar and Talbot Wind renewable energy projects from the Calgary oil and gas pipeline company. An Enbridge spokeswoman said the Enbridge Income Fund was created to hold assets that generate reliable and stable cash flow, for investors that pay a premium for the fund's dividend stream. Separating the renewable assets into the income fund provides a lower-cost way to fund Enbridge's investments in renewable power, she said. Enbridge Inc. will retain operational control of the projects, which generate 369 megawatts of power in total and include the world's largest operating photovoltaic solar facility in the Sarnia Solar project. The income fund currently owns Enbridge's Saskatchewan crude oil pipeline system, a 50% interest in the Canadian portion of the Alliance Canada natural gas pipeline that runs from British Columbia to Chicago, and partial interests in several smaller wind power and waste-heat generation plants in western Canada.


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