Sempra Energy completes sale of US solar assets

Source: press release, 13 December 2018

Sempra Energy has completed the sale of its US operating solar assets, solar and battery storage development projects, as well as its ownership interest in one wind facility
Sempra Energy has completed the sale of its US operating solar assets, solar and battery storage development projects, as well as its ownership interest in one wind facility (photo: Sempra Energy)

Sempra Energy has announced that it has completed the sale of its US 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 USD 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,” says 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 LLC’s pending acquisition of InfraREIT, Inc. 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. 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-optimisation 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.

An active sales process continues for Sempra Energy’s U.S. wind and certain non-utility US midstream natural gas assets.