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NextEra Energy Resources agrees to sell four natural gas generating assets to LS Power

NextEra Energy Resources agrees to sell four natural gas generating assets to LS Power

NextEra Energy Resources, LLC, the competitive energy subsidiary of NextEra Energy, Inc. (NYSE:NEE), today announced that one of its subsidiaries has 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-megawatt Blythe Energy Center, a natural gas-fired facility located in Blythe, Calif.; the 668-megawatt Calhoun Energy Center, a natural gas-fired facility located in Eastaboga, Ala.; the 98-megawatt Cherokee Energy Center, a natural gas-fired facility located in Gaffney, S.C.; and the 879-megawatt Doswell Energy Center, a natural gas-fired facility located in Ashland, Va.

“While there are attractive aspects for each of these assets, they have a limited strategic fit in our portfolio,” said Mitch Davidson, president and CEO of NextEra Energy Resources.

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 approximately $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 approximately $95 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.

Media contact:
NextEra Energy Resources, LLC
Media Line: (888) 867-3050
Darpan Kapadia, LS Power
212-615-3433
dkapadia@lspower.com

About LS Power:

LS Power is a development, investment, and operating company focused on the North American power and energy infrastructure sector. Since its inception in 1990, LS Power has developed, constructed, managed, or acquired more than 46,000 MW of power generation, including utility-scale solar, wind, hydro, natural gas-fired, and battery energy storage projects, of which ~16,700 MW are currently operating. LS Power’s Energy Transition Platforms include CPower Energy Management, Endurant Energy, EVgo, Rise Light & Power, and REV Renewables, as well as Waste-to-Energy initiatives. In addition, LS Power developed and operates over 660 miles of high-voltage transmission, with an additional 100+ miles and multiple substations under construction. Across these efforts, LS Power has raised $49 billion in debt and equity financing to support North American infrastructure. Through 2021, assets under LS Power control avoided 80.67 million metric tons of CO2e, equivalent to nearly 187 million barrels of oil not consumed or over 17.5 million cars taken off the road for one year. For more information, please visit www.LSPower.com.