Enbridge Inc. says it has closed the acquisition of Tonbridge Power Inc. through a plan of arrangement of all outstanding common shares of the company for C$20 million.
As part of the plan of arrangement, Enbridge will also repay approximately C$50 million of debt incurred in the development of the Montana-Alberta Tie Line (MATL) transmission project being developed by Tonbridge. Enbridge will also inject further funding to complete the first 300 MW phase of MATL, as well as an expansion of up to 600 MW.
The total cost to Enbridge for both phases of MATL is expected to be approximately C$300 million, approximately half of which is being funded through a low-cost 30-year loan from the Western Area Power Administration.
MATL is a 345-km transmission line running from Great Falls, Mont., to Lethbridge, Alberta, designed to take advantage of a growing supply of electric power in Montana, including renewable energy sources, especially wind power. Required permits for the first phase of MATL have been obtained, and the project has secured long-term contracts for the system's entire northbound capacity.