NextEra to sell 550 MW RISEC gas-fired power plant to Entergy in $346MM deal

Source: NextEra Energy Resources, LLC

Gas-fired Rhode Island State Energy Center (RISEC) NextEra Energy Resources, LLC, the competitive energy subsidiary of NextEra Energy, Inc. (NYSE:NEE), announced that two of its subsidiaries have entered into an agreement to sell their ownership interest in the 550-megawatt, gas-fired Rhode Island State Energy Center (RISEC), located in Johnston, R.I., to a subsidiary of Entergy Corporation for $346 million, subject to closing adjustments. 

A NextEra Energy Resources' affiliate will continue to operate RISEC for an initial period of one year under a service contract. The transaction is expected to close in late 2011, pending receipt of necessary regulatory approvals. 

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The transaction is expected to result in net cash proceeds of approximately $340 million after estimated transaction costs and working capital and other adjustments. The transaction will also result in a one-time after-tax loss of approximately $2 million, which the company expects to exclude from adjusted earnings. 

As previously announced, NextEra Energy Resources has entered into an agreement with an affiliate of LS Power to sell four gas-fired power plants for $1.05 billion, subject to working capital and other adjustments. 

Combined, these two transactions reflect a sales price of nearly $1.4 billion. NextEra Energy Resources expects net cash proceeds of approximately $825 million after the repayment of debt, transaction costs, and working capital and other adjustments. The sales are expected to be accretive to future years' earnings per share. 

Following the closing of the natural gas plant sales, NextEra Energy Resources will continue to own and operate a diverse mix of clean generating assets in 22 states and Canada, with a combined capacity of more than 16,420 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.

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