Teck Trail Operations’ deal with BC Hydro to sell its two-thirds interest in the Waneta Dam is officially closed. Teck made the announcement this week saying the necessary regulatory approvals and consents were received, including approval by the BC Utilities Commission.
It sold for $1.2 billion cash. An after tax gain will be recorded of approximately $820-million with no cash tax payable on the proceeds.
A 20-year lease is included in the sale to produce power for Teck’s operations in Trail. Annual payments will begin at approximately $75-million per year and escalate at 2 per cent a year.
Teck says the agreement ensures a long-term power supply at below-market pricing.
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