While divesting these gas fuelled assets, NextEra had earlier announced plans to invest up to $5.8bn in building wind and solar farms over the next three years.
“While there are attractive aspects for each of these assets, they have a limited strategic fit in our portfolio,” said Mitch Davidson, president and CEO of NextEra Energy Resources.
The transaction covers: the 507 MW Blythe Energy Center, a natural gas-fired facility located in Blythe, California; the 668 MW Calhoun Energy Center, a natural gas-fired facility in Eastaboga, Alabama; the 98 MW Cherokee Energy Center, a natural gas-fired facility located in Gaffney South Carolina; and the 879 MW Doswell Energy Center, a natural gas-fired facility located in Ashland, Virginia.
A NextEra Energy Resources’ affiliate will continue to operate three of the facilities included in the sale for an initial period of five years and the fourth facility for an initial two-year period under service contracts. The transaction is expected to close in the fourth quarter of 2011, pending receipt of necessary regulatory approvals and third-party consents.
The transaction is expected to result in net cash proceeds of about $500m after the repayment of debt and transaction costs, and a taxable gain, which is expected to be largely offset by deferred tax assets.
Following the closing of the sale, NextEra Energy Resources will continue to own and operate a diverse mix of clean generating assets in 23 states and Canada, with a combined capacity of more than 16,880 megawatts.
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