San Diego-based Sempra Energy announced Tuesday that it has entered into an agreement to complete the sale of its U.S. renewables business by selling its remaining wind operating and development assets to American Electric Power for $551 million in cash.
“The agreement to sell our U.S. wind assets along with the previously announced sales of our U.S. solar and natural gas storage assets are expected to generate approximately $2.5 billion in cash proceeds to support our growth plan as we strive to become North America’s premier energy infrastructure company,” said Joseph A. Householder, president and chief operating officer of Sempra Energy.
“The timing of these asset sales is important as we look to redeploy new capital into important growth at our U.S. utilities where we are improving the safety and reliability of electric and gas service,” he added.
The agreement to sell the remainder of Sempra Renewables, a subsidiary of Sempra Energy, includes the Black Oak Getty Wind project in Minnesota and the Apple Blossom Wind project in Michigan, as well as interests in five projects jointly owned with BP Wind Energy.
AEP also will acquire all of the Sempra Renewables wind projects currently in development.
The sale, which is expected to be completed in the second quarter, is subject to customary closing conditions and consents, including Federal Energy Regulatory Commission and Hart-Scott-Rodino Antitrust Improvements Act approvals.
— City News Service