The Globe and Mail reports in its Tuesday edition that despite discussions about a "Canada First" approach to infrastructure investment, Canada's largest utilities are investing in U.S. expansion. The Globe's Andrew Willis writes that investors believe that the impact of President Donald Trump's trade war will not affect the infrastructure sector.
Two weeks ago, Capital Power spent $3-billion (Canadian) to acquire two natural-gas-fired power plants -- one in Ohio and a second in Pennsylvania. The week before, Brookfield Infrastructure Partners agreed to buy Colonial Enterprises, owner of pipelines connecting Texas oil fields to New York customers, for $9-billion (U.S.). Both investments occurred amid tariffs from Mr. Trump and growing tensions between Canada and the U.S. They follow significant investments by Canadian utilities like TC Energy, Enbridge and Fortis in American and Mexican infrastructure prior to Mr. Trump's election. Capital Power's acquisition is significant because it is the latest in a series of well-received deals meant to shift what was once a city-owned utility away from its roots as a supplier to the Alberta grid. Capital Power now has access to North America's largest electricity market.
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