CALGARY – The Alberta Utilities Commission has approved the sale of a regulated power utility that owns about half of Alberta’s electricity transmission grid.
The deal announced in May involves SNC-Lavalin selling Altalink to a subsidiary of Berkshire Hathaway Energy, a holding company run by U.S. financier Warren Buffett.
In July, Industry Canada approved the $3.2 billion deal on the condition that the new owner maintain jobs and be managed in Alberta. Industry Canada also said all of AltaLink’s earnings must be invested in the company, or elsewhere in Canada, for at least five years.
The commission said Friday that it approved the sale because the deal will not negatively affect customer power rates and service quality.
Jim Law, a commission spokesman, says Altalink will continue to be regulated in same way it was before the sale. He said the deal comes as Altalink is raising money to expand its electricity transmission network.
“The commission found the purchase of Altalink should be a net benefit to ratepayers from a financing perspective,” he said Friday in a release.
Altalink owns about 12,000 kilometres of transmission lines, as well as 280 substations, delivering electricity to about 85 per cent of the province’s population.
Berkshire Hathaway Energy is owned by Berkshire Hathaway Inc. Based in Iowa, Berkshire Hathaway Energy, with assets of some $70 billion, owns and operates some 284,000 kilometres of transmission and distribution lines.
SNC-Lavalin is one of the leading engineering and construction groups in the world and is a major player in the ownership of infrastructure and in the provision of operations and maintenance
© 2014 The Canadian Press