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An investment fund that operates generating stations in Fort Frances, Atikokan and Kenora is selling off its U.S. operations.

The sale by PSP Investments to Hull Street Energy, a U.S.-based private equity firm, includes hydroelectric generation, energy storage and renewable assets operated by FirstLight in Massachusetts, Connecticut and Pennsylvania.

The deal is subject to regulatory approvals.

FirstLight’s Canadian portfolio includes H2O Power and Hydromega.

They remain with PSP Investments and are guided by the existing Canadian management team.

Plans for a solar project in Fort Frances are also unaffected by the sale.

“This transaction reflects our disciplined approach to portfolio management and return optimization while preserving exposure to projects in Canada with long-term, inflation-linked cashflows,” states Andrew Alley, Managing Director and Global Head of Infrastructure Investments at PSP Investments, in a release.

“We will continue to leverage our global expertise here at home to seek out new opportunities in the Canadian power sector.”

The Fort Frances solar project, under development in partnership with the Lac Des Mille Lacs First Nation, was recently awarded a 20-year agreement to provide power back to the Ontario grid.

FirstLight is completing design and permitting work, with installation expected in the next couple of years.

PSP Investments, which manages the federal pension plan funds, acquired FirstLight in 2016.