Calgary-based AltaGas selling U.S. solar, fuel cell power plants for $940M

AltaGas Ltd. says it is selling its portfolio of U.S. distributed electricity assets held by subsidiaries WGL Energy Systems and WGSW Inc. to TerraForm Power, an affiliate of Brookfield Asset Management, for $940 million.

The portfolio consists of 322 megawatts of generation facilities in 20 states and the District of Columbia, including 291 MW of commercial and industrial solar, 10 MW of fuel cells and 21 MW of residential solar assets.

Earlier this year, the Calgary-based energy infrastructure company completed the sale of its interest in the Stonewall Gas Gathering System in West Virginia for $379 million.

AltaGas says the asset sales are part of a plan to regain financial strength and flexibility to fund future growth opportunities in its midstream and U.S. utilities business.

The company, which recently opened Canada's first propane export terminal at Ridley Island on the West Coast, has been paying down debt after completing the $9-billion purchase of U.S. utility company WGL Holdings in July 2018.

Last year, it exceeded its target to sell $2 billion in assets to pay down bridge financing on the WGL deal.