AltaGas to sell US distributed generation assets to TerraForm for $720m. Credit: Zbynek Burival on Unsplash.

Canadian energy infrastructure group AltaGas has entered into a definitive agreement for the sale of its US distributed generation assets portfolio to TerraForm Power for approximately $720m (C$940m).

The company’s US distributed generation assets is held by its subsidiaries, WGL Energy Systems and WGSW.

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TerraForm Power is a US-based company and affiliate of Brookfield Asset Management. The transaction is subject to customary closing conditions and is expected to close in the third quarter of 2019.

AltaGas president and chief executive officer Randy Crawford said: “We are firmly focused on enhancing the value of our core asset footprint where we see the most attractive opportunities for long-term, stable earnings growth.

“With today’s announcement, we are very close to achieving our 2019 asset sales target. We continue to execute against our near-term priorities, and I am confident that our 2019 funding and business plan is on track.”

The company said that its successful execution of asset sale programme strengthens its financial position and allows the firm to focus on core businesses.

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With the announcement of the proposed transaction AltaGas has announced or completed around $1.3bn of its asset sales programme worth $1.5bn to $2bn targeted for 2019.

Earlier in 2019, the company completed the sale of its stake in the Stonewall Gas Gathering System for gross proceeds of around C$379m.

AltaGas’s US distributed generation assets portfolio consists of 322MW of contracted distributed generation assets located in 20 states and in the District of Columbia.

The portfolio includes 291MW of commercial and industrial solar consisting of both wholly-owned assets and interests in tax equity partnerships, 10MW of fuel cells, as well as 21MW of residential solar assets.