CALGARY, ALBERTA--(Marketwired - Dec 1, 2014) - Today AltaLink, L.P. announced its acquisition by Berkshire Hathaway Energy (BHE) for C$3.1 billion (approximately US$2.7 billion) in cash has been completed after receiving the required approval on November 28, 2014, from the Alberta Utilities Commission (AUC). The acquisition received federal regulatory approvals earlier this year required under the Competition Act in Canada and the Investment Canada Act.
"Throughout our history, AltaLink's commitment to building, owning and operating a safe, reliable and cost-effective transmission system has powered Alberta's economy," said Scott Thon, president and CEO, AltaLink. "Our dedication to Alberta is absolute. We remain locally managed to ensure that we continue to provide the service Albertans expect and deserve."
"We are thrilled today to join the Berkshire Hathaway Energy family," Thon said. "BHE has built a foundation of diverse companies with great energy, utility experience and an unwavering commitment to providing value for customers."
AltaLink will remain locally managed and incorporated under the laws of Canada, with its headquarters, senior management team and operations located in Alberta. There will be no additional cost to ratepayers or reductions in employment levels at AltaLink as a result of the transaction. AltaLink's board of directors will also continue to be comprised of a majority of both independent and Canadian members.
BHE made a series of additional commitments to Canada, in connection with the acquisition's approval under the Investment Canada Act, including:
One hundred per cent of AltaLink's earnings will be reinvested back into AltaLink, elsewhere in Alberta or other regions of Canada. This commitment will support AltaLink's C$2.7 billion (US$2.4 billion) investment in Alberta's energy infrastructure expected during the next three years, subject to continued oversight by the Alberta Utilities Commission and the Alberta Electric System Operator.
At least C$3 million (US$2.6 million) of new funds from BHE will support Alberta-based academic programs focused on energy-related topics, cultural organizations and community-based programs.
BHE will maintain AltaLink's commitment to provide C$3 million (US$2.6 million) over three years in community and charitable contributions across Alberta.
BHE will share best practices, at no cost, with AltaLink on safety, customer satisfaction, cybersecurity and supplier diversity.
BHE will provide opportunities for Albertan and other Canadian companies to supply products and services to other BHE businesses.
"The values of BHE align with AltaLink's values and with those of Albertans," said Greg Abel, chairman, president and CEO, BHE. "Our core principles include a strong commitment to employees and their safety, second-to-none customer service, and open, transparent relationships with regulators and key stakeholders. We are confident in the operations and integrity of AltaLink, and we look forward to working with its dedicated employees and management team as they continue to execute their business plans. We are pleased to have an opportunity to play a role in Alberta's economy and to support the continued development of its economic engine."
Headquartered in Calgary, with offices in Edmonton, Red Deer and Lethbridge, AltaLink is Alberta's largest electricity transmission provider. We are committed to meeting the province's demand for electricity, providing innovative solutions, and partnering with our stakeholders and communities in doing so. A wholly-owned subsidiary of Berkshire Hathaway Energy, AltaLink is part of a global group of companies delivering electricity and utility services to customers worldwide.
Berkshire Hathaway Energy
Berkshire Hathaway Energy owns a portfolio of locally managed businesses that share a vision for the energy future, make sustainable investments to achieve that vision, and had $74 billion of assets as of September 30, 2014. These businesses deliver safe, reliable service each day to more than 8.4 million customers and end-users around the world and consistently rank high among its peers in customer satisfaction. Berkshire Hathaway Energy is headquartered in Des Moines, Iowa, U.S.A. Learn more and review a complete list of our businesses at www.berkshirehathawayenergyco.com.
This news release does not constitute an offer to sell or the solicitation of an offer to buy AltaLink's securities in any jurisdiction, including but not limited to, the United States. AltaLink's securities have not been and will not be registered under the United States Securities Act of 1933, as amended (the "U.S. Securities Act"), or any state securities laws and may not be offered or sold in the United States except in certain transactions exempt from the registration requirements of the U.S. Securities Act and applicable state securities laws.
Except for the historical and present factual information contained herein, the matters set forth in this news release, including words such as "expects", "intends", "projects", "plans", "anticipates" and similar expressions, are forward looking information that represents management of AltaLink's Internal projections, expectations or beliefs concerning, among other things, future operating results and various components thereof or the economic performance of AltaLink. The projections, estimates and beliefs contained in such forward looking statements necessarily involve known and unknown risks and uncertainties, which may cause AltaLink's actual performance and financial results in future periods to differ materially from any projections of future performance or results expressed or implied by such forward looking statements. These risks and uncertainties include, among other things, those described in AltaLink's filings with the Canadian securities authorities. Accordingly, holders of AltaLink securities and potential investors are cautioned that events or circumstances could cause results to differ materially from those predicted. AltaLink disclaims any responsibility to update these forward looking statements.