Sempra Energy announced that it has completed the sale of its U.S. operating solar assets, solar and battery storage development projects, as well as its ownership interest in one wind facility, to Consolidated Edison for approximately $1.6 billion in cash, subject to customary post-closing adjustments.
“With the completion of this sale, we continue to build momentum toward becoming North America’s premier energy infrastructure company, while expanding our opportunities to build and acquire other energy infrastructure,” said Joseph A. Householder, president and chief operating officer of Sempra Energy. “We’ve had a long-standing relationship working with Con Edison and want to commend their leadership team for their efforts to expeditiously complete this transaction.”
Sempra Energy expects to use the sale proceeds to significantly expand its regulated Texas utility platform through Oncor Electric Delivery Company’s pending acquisition of InfraREIT and to pay down debt.
The transaction included: 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. Con Edison also acquired Sempra Energy’s interest in the jointly owned facilities 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 represents approximately 980 MWac of installed capacity.
This transaction is part of a multi-phase, portfolio-optimization initiative announced by Sempra Energy on June 28 following a year-long comprehensive strategic review by Sempra Energy’s executive team and board of directors. This initiative is designed to sharpen the company’s strategic focus and create value for all shareholders.
“Our acquisition of these renewable energy assets builds on a strong record of environmental commitment, and our determination to be national leaders in clean energy initiatives,” said John McAvoy, Con Edison’s chairman and CEO. “Over the next three years, we will double the gas energy efficiency levels we offer customers and reduce overall usage during peak periods, while supporting the city and state’s climate and clean energy goals.
“We expect to invest $9.5 billion on our energy systems during this period to improve safety, maintain reliability, and reduce risk,” McAvoy added. “Our core energy systems remain the backbone of our operations, and will continue to serve as the platform for incorporating new renewable technologies.”
An active sales process continues for Sempra Energy’s U.S. wind and certain non-utility U.S. midstream natural gas assets.
News item from Sempra Energy and Con Edison