San Diego-based Sempra Energy has entered into an agreement to sell its U.S. non-utility operating solar assets, solar and battery storage development projects, and one wind facility to Consolidated Edison Inc.
The deal totals $1.54 billion in cash, subject to adjustments for working capital and pre-closing cash contributions.
“This sale represents an important step forward in the portfolio-optimization plan we announced in June to support market-growth opportunities,” says Joseph A. Householder, president and chief operating officer of Sempra Energy. “We plan to work closely with Consolidated Edison to ensure a smooth transition.”
On June 28, Sempra Energy announced a multiphase portfolio-optimization initiative designed to sharpen the company’s strategic focus and create value for all shareholders. The announcement followed a yearlong, comprehensive strategic review by Sempra Energy’s executive team and board of directors. In addition to the assets included in this sale, Sempra Energy intends to sell the rest of its non-utility U.S. wind and certain U.S. midstream natural gas assets.
The assets included in the sale to Consolidated Edison are Mesquite Solar 2 and 3 in Arizona, Copper Mountain Solar 1 and 4 in Nevada, Great Valley Solar in California, and solar and battery storage development projects. Additionally, Consolidated Edison will acquire the facilities jointly owned with Sempra Renewables, including Mesquite Solar 1; Copper Mountain Solar 2 and 3; the Alpaugh, Corcoran and White River solar facilities in California; and the Broken Bow II wind facility in Nebraska.
The sale comprises approximately 980 MW AC of installed capacity in Sempra Energy’s non-utility renewables portfolio. The sale is expected to be completed near the end of this year.
The sale is subject to customary closing conditions and consents, including approvals of the Federal Energy Regulatory Commission and the U.S. Department of Energy and expiration or early termination of the waiting period under the Hart-Scott-Rodino Antitrust Improvements Act.
Credit Suisse, J.P. Morgan and Lazard are serving as financial advisors on the sale, and Latham & Watkins LLP is serving as legal advisor.