Today, the Maine Public Utilities Commission (MPUC) issued their approval for the sale of Emera Maine, a regulated electricity transmission and distribution company in Maine, from Emera Inc. (TSX: EMA) to ENMAX Corporation. The MPUC's approval marks the sixth and final regulatory agency approval required to proceed with closing the acquisition.
In March 2019, Emera Inc. and ENMAX announced they had entered into a definitive agreement in which Emera agreed to sell to ENMAX its interest in Emera Maine. The MPUC's approval comes after a negotiated settlement agreement was reached between ENMAX, Emera Maine, the Maine Office of the Public Advocate and other intervenors in Maine's regulatory review of the sale.
The 43 commitments contained in the settlement agreement provide direct benefits to Emera Maine customers. These benefits include holding customer distribution rates at current levels until October 2021, implementing significant customer service quality and reliability performance requirements, customer rate credits, and increasing levels of community investment.
"We are pleased with the approval that we received from the MPUC and would like to acknowledge the contributions of all parties in ensuring the change of ownership to ENMAX provides direct benefits to Emera Maine customers," said Gianna Manes, President and CEO, ENMAX. "ENMAX has made a significant, long term commitment to Emera Maine's customers, employees and Maine communities. With this approval, we are looking forward to a smooth transition of ownership."
Emera Maine will continue to operate as a stand-alone utility headquartered in Bangor. In response to the evolving COVID-19 global pandemic, both ENMAX and Emera Maine continue to place priority on efforts to ensure the health and safety of employees and the continuity of safe, reliable service to customers. In addition, both companies have taken additional measures to support customers during this time. Subject to issuance of the final order by the MPUC and satisfaction of closing conditions, the transaction is expected to close within the next week.
This acquisition reflects ENMAX's strategy to grow its regulated utility business in North America, leveraging ENMAX's established expertise in the provision of regulated transmission and distribution electricity services with strong customer satisfaction. This transaction will increase ENMAX's regulated rate base by 50 percent, with 70 percent of ENMAX's future cash flows being derived from regulated and non-commodity sources. ENMAX is using its strong balance sheet to grow and is committed to paying down the acquisition debt over time.
About ENMAX
ENMAX Corporation, through its subsidiaries, makes, moves and sells electricity to residential, small business and large commercial customers and is headquartered in Calgary, Alberta. ENMAX Power Corporation owns and operates transmission and distribution infrastructure in Calgary and ENMAX Energy Corporation owns diverse generation facilities throughout the province. Through its subsidiaries, ENMAX offers a range of innovative energy solutions to over 674,800 customers across Alberta including electricity, gas, renewable energy and other services.