Alberta regulators allowed a subsidiary of US conglomerate Berkshire Hathaway to complete the C$3.1bn ($2.7bn) purchase of the largest transmission provider in the province, dismissing concerns about potential rate hikes for electricity consumers.
Berkshire this month completed the acquisition of AltaLink, which manages infrastructure delivering electricity to 85pc of consumers in Alberta. AltaLink's purchase is Berkshire's first major energy deal in Canada. Berkshire owns stakes in electricity generation, transmission and distribution companies in the US.
Canadian utility holding company ATCO Group in July said the transfer of ownership may imperil Alberta's electricity consumers and urged its customers to protest to the Alberta Utilities Commission.
But the commission dismissed those concerns in its ruling issued late last month, noting that Alberta's wholesale power markets are competitive and that regulators will oversee the pricing of transmission services regardless of AltaLink's ownership. The provincial regulators also set aside concerns about the sale to a US investor and about the loss of control over Alberta's transmission infrastructure.
AltaLink said it will operate as a separate company under Berkshire, retaining its current name and its Calgary headquarters. Berkshire has committed to reinvesting all of AltaLink's profits into the company's infrastructure in Alberta and other Canadian provinces for at least five years. Berkshire also will maintain AltaLink's planned C$2.7bn investment in energy infrastructure in 2015-17.
Alberta is one of the fastest growing electricity markets in North America because of strong industrial demand in the oil and gas-rich province.
hg/ee
Send comments to feedback@argusmedia.com
If you would like to review other ArgusMedia.com content options, request more information about Argus' energy news, data and analysis services.
Copyright © 2014 Argus Media Ltd - www.ArgusMedia.com - All rights reserved.
