The owner of the Fort Frances Generating Station has sold off its U.S. power assets and rebranded Canadian assets from FirstLight to Caelo Energy. Despite this change, Fort Francians can expect the same services with no difference in costs.
The Public Sector Pension Investment Board (PSP Investments), Caelo Energy’s parent company, announced Tuesday that it had completed the sale of its U.S. operations, including the FirstLight brand under which the Fort Frances plant had been held, to private equity firm Hull Street Energy.
“We’ve gone through several name changes of whoever owns and operates that generating station, and there really should be no impact other than people’s email domain changing,” said Joerg Ruppenstein, president and CEO of Fort Frances Power Corp. (FFPC). “It’s just on the administrative side. We’ll still be dealing with the same contacts as when branded as FirstLight and H2O Power, but they’re going to be issued new email addresses in this company.
“Functionally speaking, the 1905 power agreement is etched in stone, if you will, from the Supreme Court ruling, and nothing will change there.”
Ruppenstein was referring to a 1905 agreement between the Province of Ontario and the predecessor of the company Boise Cascade Canada. This agreement dictated that in return for a grant of land, water‑power rights and development privileges, the company would supply power to the Canadian side of the Rainy River at a reduced cost.
This agreement was later disputed and, in 1983, worked its way to the Supreme Court of Canada under the case name Fort Frances v. Boise Cascade Canada Ltd.
The ruling from the Supreme Court finalized the agreement and obligations of both parties going forward.
“We’re still living under the terms that were established by the Supreme Court in 1983,” Ruppenstein said.
FirstLight, which was a combination of PSP Investments’ legacy Hydromega and H2O Power portfolios, also included the 57.2 MW Fort Frances Solar Project, being developed in partnership with Lac des Mille Lacs First Nation. Both generating businesses are now under the Caelo brand.
PSP Investments has appointed former FirstLight board member and interim president of H2O Power Patrick Gut as chief executive officer (CEO) of Caelo.
“We start from a strong foundation—hydroelectric facilities that have served their communities for generations—and we are excited to build on that foundation as we shape Caelo’s future,” Gut said in a press release.
The U.S. portfolio being sold includes about 1.4 GW of installed capacity across hydroelectric generation, energy storage and other clean energy assets in Massachusetts, Connecticut and Pennsylvania.
Caelo operates 18 hydroelectric facilities across Quebec and Ontario totalling 202 MW of installed capacity and a development pipeline of nearly 1 GW of renewable energy and energy storage projects. FirstLight’s Canada-based employees will remain with Caelo Energy, the company said.
“In Canada, we are retaining a platform with long-term, inflation-linked operating cash flows, an attractive development pipeline and an experienced team positioned to pursue growth opportunities in Canada,” said Andrew Alley, PSP Investments’ managing director and global head of infrastructure investments.
“Patrick has helped shape this portfolio for years as an investor and a board member, and we have every confidence in him to successfully lead Caelo Energy through this next chapter.”
According to the company, the name Caelo (pronounced KAY-loh) is derived from the Latin word caelum, meaning “sky.”
“It reflects the source of the natural elements that power our projects: the sun, the wind and the water, and our commitment to developing renewable energy that benefits both people and the environment,” the company says on its website.
Ottawa-based PSP Investments is one of Canada’s largest pension investors with $320.6 billion of net assets under management in a diversified global portfolio composed of investments in capital markets, private equity, real estate, infrastructure, natural resources and credit investments.
The firm manages and invests amounts transferred to it by the Government of Canada for the pension plans of the federal public service, the Canadian Forces, the Royal Canadian Mounted Police and the Reserve Force.
