Sempra Energy (NYSE: SRE) today announced 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 (AEP) for $551 million in cash, subject to closing adjustments and working capital.
"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."
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 its interests in the following projects jointly owned with BP Wind Energy: Auwahi Wind in Hawaii (wind and battery storage), Flat Ridge 2 Wind in Kansas, Mehoopany Wind in Pennsylvania, Cedar Creek 2 Wind in Colorado, and Fowler Ridge 2 Wind in Indiana. AEP also will acquire all of the Sempra Renewables wind projects currently in development.
The sale to AEP comprises approximately 724 megawatts of capacity in Sempra Energy's non-utility U.S. renewables portfolio. The sale is expected to be completed in the second quarter of 2019.
The sale is subject to customary closing conditions and consents, including Federal Energy Regulatory Commission and Hart-Scott-Rodino Antitrust Improvements Act approvals.
Credit Suisse and J.P. Morgan are serving as Sempra Energy's lead financial advisors on the sale and Latham & Watkins LLP is serving as its legal advisor.
American Electric Power is one of the nation's largest investor-owned energy-delivery companies, with approximately $16 billion in annual revenues and $69 billion in assets.
Sempra Energy, a San Diego-based energy infrastructure 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.
