Business, Canada, North America, Small Hydro

Connor, Clark & Lunn Infrastructure, Desjardins acquire Regional Power hydroelectric plants

Connor, Clark & Lunn Infrastructure (CC&L Infrastructure) and Regime de Rentes du Mouvement Desjardins, Desjardins Financial Security Life Assurance Company, and Certas Home and Auto Insurance Company (together, Desjardins) have acquired Regional Power Inc. from The Manufacturers Life Insurance Company (Manulife).

Regional Power’s assets include three run-of-river hydroelectric projects with a combined installed capacity of about 70 MW and a pipeline of development-stage wind and hydro generation opportunities.

The hydroelectric plants were recently built and are 32-MW Long Lake, 20-MW Bear Creek (consisting of the Upper Bear and Lower Bear power stations) and 19-MW White River (also called Gitchi Animki). Each operates under a 40-year electricity purchase agreement (EPA) for 100% of their output, of which 33 to 37 years remain. Long Lake and Bear Creek are located in British Columbia and have EPAs with the BC Hydro and Power Authority. White River is located in Ontario and has an EPA with the Independent Electricity System Operator. 

“CC&L Infrastructure is pleased to expand its portfolio of Canadian hydroelectric facilities with the acquisition of these high-quality assets,” said Matt O’Brien, president of CC&L Infrastructure. “This investment leverages our experience owning and operating hydro assets and is expected to deliver stable, contracted cash flows for many years to come. We look forward to working with our First Nations partners and the outstanding team at Regional Power in the successful integration and operation of these projects.”

“Desjardins is pleased to acquire this portfolio alongside CC&L Infrastructure, our long-term investment partner,” added Sylvain Gareau, vice president of Regime de Rentes du Mouvement Desjardins (RRMD). “The perpetual nature of these hydroelectric assets and their ability to generate long-term stable cash flows is consistent with our infrastructure portfolio’s investment objectives.”

CC&L Infrastructure invests in middle-market infrastructure and infrastructure-like assets with highly attractive risk-return characteristics, long lives and the potential to generate stable cash flows.

Through its Retirement Committee, RRMD provides a defined benefit pension plan to more than 66,000 beneficiaries. Desjardins Financial Security Life Assurance Company helps more than 5 million Canadians prepare for life’s contingencies and plan a financially secure retirement by offering them tailor-made combinations of life and health insurance coverages. Certas Home and Auto Insurance Company is 90% owned by Desjardins General Insurance Group, which distributes insurance under Desjardins Insurance and is Canada’s 3rd largest provider of property and casualty insurance.