Canadian utility Ontario Power Generation has agreed to acquire Eagle Creek Renewable Energy LLC (Eagle Creek), an operator of small hydropower facilities in the US, in a deal valued at around US$298 million.

The acquisition will have no impact on electricity customers in Ontario and will lead to higher returns for OPG’s shareholder, the Province of Ontario, the company said in a statement.

Eagle Creek currently owns and operates 63 small hydropower facilities representing 216MW of capacity primarily located in the US Northeast and Midwest.

Eagle Creek also has ownership interests in 13 other hydroelectric assets and two solar facilities in New England representing 10MW of capacity.

Pending US regulatory approvals and final closing, Eagle Creek will become a wholly owned subsidiary of OPG. OPG's operations in Ontario will remain a separate business entity, primarily regulated by the OEB.

“By expanding our core business with this purchase, OPG is capitalizing on a new growth opportunity by making an investment in a strategic set of hydroelectric assets that will produce an attractive return for our shareholder, the Province of Ontario,” said Jeff Lyash, OPG President and CEO. “This acquisition will be financed without the use of taxpayer funds and will have no impact on Ontario’s electricity customers.  As Ontario’s public electricity generator, we have been stewards of hydroelectric assets for more than a century and we are proud to continue that legacy with this acquisition.”