Juno Beach, Fla., September 1, 2011 — NextEra Energy Resources, the competitive energy unit of NextEra Energy, Inc., entered into an agreement to sell its ownership interest in a portfolio of natural gas-fired generating assets to an affiliate of LS Power for $1.05 billion, subject to working capital and other adjustments.
The transaction includes the 507-MW Blythe Energy Center, a natural gas-fired facility located in Blythe, Calif.; the 668-MW Calhoun Energy Center, a natural gas-fired facility located in Eastaboga, Ala.; the 98-MW Cherokee Energy Center, a natural gas-fired facility located in Gaffney, S.C.; and the 879-MW Doswell Energy Center, a natural gas-fired facility located in Ashland, Va.
A NextEra Energy Resources' affiliate will continue to operate three of the facilities included in the sale for an initial period of five years and the fourth facility for an initial two-year period under service contracts. The transaction is expected to close in the fourth quarter of 2011, pending receipt of necessary regulatory approvals and third-party consents.
The transaction is expected to result in net cash proceeds of about $500 million after the repayment of debt and transaction costs, and a taxable gain, which is expected to be largely offset by deferred tax assets.
The transaction will also result in a one-time after-tax charge of about $97 million, which the company expects to exclude from adjusted earnings. The sale is expected to be accretive to future years' earnings per share.
As was previously announced, NextEra Energy Resources plans to continue to explore options associated with its Rhode Island State Energy Center, which may include selling the asset.
Following the closing of the sale, NextEra Energy Resources will continue to own and operate a diverse mix of clean generating assets in 23 states and Canada, with a combined capacity of more than 16,880 megawatts.
Citi and Credit Suisse served as NextEra Energy Resources' financial advisors in this transaction. Hogan Lovells served as NextEra Energy Resources' outside legal counsel in this transaction.