Return to search

PE-backed ANC Power buys energy contract from Alberta’s Balancing Pool

ANC Power Inc and TransCanada Energy Ltd have acquired two 100 megawatt energy contracts from The Balancing Pool, an Alberta government agency set up to promote competition in the electric industry. The contracts commence on November 1st and expire in October 2017. The financial terms of the transactions were not disclosed. ANC Power is co-owned by West Fraser Timber Co Ltd and Whitecourt Newsprint LP, an affiliate of Canadian private equity firm Stern Partners. Earlier this year, the Vancouver-based Stern Partners acquired a majority interest in McRae’s Environmental Services Ltd.


Balancing Pool sells 200 megawatts of electricity contracts to marketplace

Calgary, Canada, October 17, 2014

The Balancing Pool is pleased to announce the sale of two (2) 100 MW energy contracts, each with a 3-year term derived from the 762 MW Genesee Power Purchase Arrangement (PPA) the Balancing Pool holds on behalf of consumers.

ANC Power Inc. and TransCanada Energy Ltd. are the successful buyers of these energy contracts which commence on November 1, 2014 and expire on October 31, 2017.

The Balancing Pool received strong interest and bids for these energy contracts. We are satisfied that a competitive sale occurred and resulted in the Balancing Pool receiving fair market value.

BowMont Capital and Advisory Ltd. acted as financial advisor to the Balancing Pool on the transactions.

ANC Power Inc. is an Alberta company owned equally by West Fraser Timber Co Ltd. and Whitecourt Newsprint Limited Partnership, an affiliate of Stern Partners Inc. The co-owners also equally own Alberta Newsprint Company, which is engaged in the production of newsprint and electrical power at its facility in Whitecourt, Alberta, and ANC Transloading Ltd., which is engaged in the transloading of crude oil and related products.

TransCanada is a leader in the responsible development and reliable operation of North American energy infrastructure including natural gas and liquids pipelines, power generation and gas storage facilities. A growing independent power producer, TransCanada owns or has interests in over 11,800 megawatts of power generation in Canada and the United States. Since 1999, TransCanada has been operating, trading and marketing over 2,000 MWs of generation in Alberta.

The Balancing Pool was established in 1999 through the Electric Utilities Act to manage the financial accounts arising from the transition to a competitive generation marketplace, provide a backstop to PPA related extraordinary events, manage the electricity portfolio in a commercial manner, transfer offer control to the market, manage the investment accounts prudently and remit surplus funds to consumers.

For more information please contact:
Bruce Roberts, Balancing Pool CEO, 403-539-5351
Eagle Kwok, Director, Planning & Development, Balancing Pool, 403-539-5352

Photo courtesy of Shutterstock