From prelim prospectus should market OK IMO
The Company The Company, currently a wholly owned subsidiary of AltaGas, is a natural gas distribution utility company providing rate-regulated utility service in British Columbia. Through the Acquisition, described in detail below, the Company will acquire AltaGas’ rate-regulated natural gas distribution utility businesses in Alberta, Nova Scotia and the Northwest Territories, along with certain direct and indirect interests in long-term contracted renewable power generation facilities. Upon completion of the Offering and the Acquisition, AltaGas will own approximately 45% of the outstanding Common Shares (approximately 36.8% if the Over-Allotment Option is exercised in full), with the remainder owned by subscribers in the Offering, and the Company’s business will consist of the following diversified rate-regulated natural gas distribution utility and contracted renewable power assets: • PNG, which owns and operates the Western System, a regulated natural gas distribution and transmission public utility within the west central portion of northern British Columbia, and PNG(NE), which owns and operates the Northeast System, a distribution utility in northeast British Columbia, having a combined rate base of $212.5 million as of June 30, 2018; • AUI, which delivers natural gas to residential, farm, and C&I consumers in more than 90 communities throughout Alberta, as well as transmission facilities, including, without limitation, high-pressure pipelines that deliver natural gas from gas sources to the distribution systems. AUI has a rate base of $324.8 million as of June 30, 2018; • Heritage Gas, a natural gas distribution utility in Nova Scotia with a franchise that gives it the exclusive right to distribute natural gas through its distribution system to all or part of seven counties in Nova Scotia, including the Halifax Regional Municipality, until December 31, 2028. Heritage Gas has a rate base of $299.9 million as of June 30, 2018; • an approximately one-third interest in Inuvik Gas and the Ikhil Joint Venture, which includes natural gas reserves, a processing facility, a 47 kilometre pipeline that delivers natural gas to Inuvik Gas and the Northwest Territories Power Corporation and the natural gas distribution facilities in the Town of Inuvik, Northwest Territories; • the Bear Mountain Wind Park near Dawson Creek, British Columbia, a 102 MW generating wind facility consisting of 34 turbines, a substation and transmission and collector lines, which is connected to the BC Hydro transmission grid; and • an approximately 10% indirect equity interest in the entities that own the Northwest Hydro Facilities, located in Tahltan First Nation territory approximately 1,000 kilometres northwest of Vancouver, British Columbia, comprised of the Forrest Kerr Hydroelectric Facility, the McLymont Creek Hydroelectric Facility, the Volcano Creek Hydroelectric Facility and all associated transmission and related facilities, having a combined generating capacity of approximately 277 MW. The Company’s objective is to: (a) provide safe, reliable, clean and cost-effective energy to its customers; (b) create stable, consistent returns with strong organic growth for investors through the ownership of rate-regulated utilities and renewable power assets contracted through long-term PPAs with creditworthy counterparties; and (c) pay out a portion of its net income to the Shareholders on a quarterly basis. The Company’s strategy is focused on delivering safe, reliable, clean and cost-effective energy solutions to customers while achieving long-term profitable growth. Through the Company’s diversified rate-regulated natural gas distribution utilities and long-term contracted renewable power assets, the Company expects to deliver low-risk, stable, predictable earnings and cash flows. The Company works to maintain strong
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relationships with regulators, be seen as a credible proponent for regulatory initiatives and thereby be able to continue growing its rate base through system betterment and expansion opportunities. The Company’s vision is to be the clean energy supplier of choice in each of the jurisdictions in which it operates through being a leader in safety, reliability, cost effectiveness and customer service. Through disciplined investments in its utilities and in contracted renewable power opportunities, the Company is committed to achieving long-term sustainable growth. Safety, customer service and earnings per Common Share are the primary measures of performance for the Company.