NV Energy sells California electric power distribution, generation assets for $132MM

Source: NV Energy, Inc.

NV Energy, Inc. (NYSE:NVE) announced that its wholly-owned subsidiary, Sierra Pacific Power Company d/b/a NV Energy (NV Energy) completed the sale of its California electric power distribution and generation assets, originally announced in April 2009, to California Pacific Electric Company (CalPeco), a company jointly owned by Algonquin Power & Utilities Corporation (TSX:AQN) and Emera Inc. (TSX:EMA). CalPeco will do business as Liberty Energy-California Pacific Electric Company.

At closing, NV Energy received total cash consideration of approximately $132 million, which includes a premium on the net rate base of the assets, plus a net working capital adjustment. NV Energy said it will use the proceeds to strengthen the company's balance sheet and reduce the need to raise capital to fund investment in utility infrastructure. 

The company had previously said it was selling its California assets in order to concentrate on its business in the State of Nevada, where it serves approximately 97 percent of all electric customers in the state. Approximately 47,000 California customers were receiving electric service from NV Energy at the close of the sale.

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