By OGJ editors
HOUSTON, May 17 -- Calgary-based Enbridge Inc. has agreed to sell its 100% interest in Cornwall Street Railway Light & Power Co. Ltd. (Cornwall Electric), to Fortis Inc., St. John's, Newf., for $67 million in cash. The sale, subject to regulatory approvals, is expected to close in the third quarter.
Fortis, a diversified electric utility holding company, has interests in five other electric distribution utilities in Canada and abroad.
Enbridge said there would be no impact on the 60 Cornwall Electric employees or on the electric power utility's 23,000 residential and business customers in Cornwall, Ont., and the surrounding area.
Enbridge acquired Cornwall Electric in 1998 to take advantage of opportunities expected to arise from the deregulation of Ontario's electricity market. However, the anticipated market, which would have enabled Enbridge to invest in the privatization of Ontario Municipal Electric Utilities, did not evolve.
Nevertheless, a company spokesperson said the investment in Cornwall Electric enabled Enbridge to acquire knowledge and operations expertise in electric power distribution, and the company is still interested in entering the electricity distribution market in its franchise area.
Enbridge said the sale of Cornwall Electric was also consistent with its recent initiatives to focus more fully on the operations of its core business—liquids and natural gas pipelines and natural gas distribution.