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, Inc. 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.
Sempra Energy expects to use the sale proceeds to significantly expand its regulated Texas utility platform through Oncor Electric Delivery Company LLC’s pending acquisition of InfraREIT, Inc. and to pay down debt.
“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,” added Householder.
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. Additionally, 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 megawatts AC 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.
Con Edison is one of the nation’s largest investor-owned energy-delivery companies, with approximately $12 billion in annual revenues and $49 billion in assets.
Sempra Energy, a San Diego-based energy services holding company with 2017 revenues of more than $11 billion, is the utility holding company with the largest U.S. customer base. The Sempra Energy companies’ approximately 20,000 employees serve more than 40 million consumers worldwide.