NextEra Energy to divest nearly 3GW of its power generating assets for $1.59bn

29 November 2015 (Last Updated November 29th, 2015 18:30)

NextEra Energy Resources has signed an agreement to divest two of its natural gas-fired power plants in the state of Texas for approximately $1.59bn.

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NextEra Energy Resources has signed an agreement to divest two of its natural gas-fired power plants in the state of Texas for approximately $1.59bn.

Under the deal with Luminant, which is an affiliate of Energy Future (EFH), NextEra will be reducing its power generation capacity by nearly 3GW with the sale of the two assets.

The facilities under consideration include the 1,912MW Forney Energy Center and the 1,076MW Lamar Energy Center.

Luminant CEO Mac McFarland said: "These plants are strategic investments that enhance our asset portfolio, while building on our existing operations in Electric Reliability Council of Texas (ERCOT)."

While the Forney Energy Center had been operating since 2003, the Lamar Energy Center had entered service in 2000.

"These plants are strategic investments that enhance our asset portfolio, while building on our existing operations in Electric Reliability Council of Texas (ERCOT)."

The transaction is expected to be completed by the initial quarter of next year, following regulatory approvals and other customary closing conditions.

NextEra Energy Resources president and CEO Armando Pimentel said: "This transaction enables us to further optimise our power generation assets and is consistent with our strategy of reducing our merchant exposure while recycling capital into our growing long-term contracted asset portfolio."

Both the power plants, however, will be operated by an affiliate of NextEra Energy for an initial period of up to one year.

The sale of the assets is in line with NextEra Energy’s intentions to reduce exposure to the competitive power business, reports Bloomberg.


Image: While the Forney Energy Center had been operating since 2003, the Lamar Energy Center had entered service in 2000. Photo: courtesy of khunaspix/ FreeDigitalPhotos.net.