JUNO BEACH, Fla., Oct. 24, 2011 /PRNewswire/ -- NextEra Energy Resources, LLC, the competitive energy subsidiary of NextEra Energy, Inc. (NYSE: NEE), today announced that two of its subsidiaries have entered into an agreement to sell their ownership interest in the 550-megawatt Rhode Island State Energy Center (RISEC), located in Johnston, R.I., to a subsidiary of Entergy Corporation for $346 million, subject to closing adjustments.
A NextEra Energy Resources' affiliate will continue to operate RISEC for an initial period of one year under a service contract. The transaction is expected to close in late 2011, pending receipt of necessary regulatory approvals.
The transaction is expected to result in net cash proceeds of approximately $340 million after estimated transaction costs and working capital and other adjustments. The transaction will also result in a one-time after-tax loss of approximately $2 million, which the company expects to exclude from adjusted earnings.
As previously announced, NextEra Energy Resources has entered into an agreement with an affiliate of LS Power to sell four gas-fired power plants for $1.05 billion, subject to working capital and other adjustments.
Combined, these two transactions reflect a sales price of nearly $1.4 billion. NextEra Energy Resources expects net cash proceeds of approximately $825 million after the repayment of debt, transaction costs, and working capital and other adjustments. The sales are expected to be accretive to future years' earnings per share.
Following the closing of the natural gas plant sales, NextEra Energy Resources will continue to own and operate a diverse mix of clean generating assets in 22 states and Canada, with a combined capacity of more than 16,420 megawatts.
Citi and Credit Suisse served as NextEra Energy Resources' financial advisors in this transaction. Hogan Lovells served as NextEra Energy Resources' outside legal counsel in this transaction.
About NextEra Energy Resources
NextEra Energy Resources, LLC, is a clean energy leader and one of the largest competitive energy suppliers in North America. A subsidiary of Juno Beach, Fla.-based NextEra Energy, Inc. (NYSE: NEE), NextEra Energy Resources is the largest generator in North America of renewable energy from the wind and sun. It operates clean, emissions-free nuclear power generation facilities in New Hampshire, Iowa and Wisconsin as part of the NextEra Energy nuclear fleet, which is the third largest in the United States. NextEra Energy had 2010 revenues of more than $15 billion, nearly 43,000 megawatts of generating capacity, and approximately 15,000 employees in 28 states and Canada. For more information, visit www.NextEraEnergyResources.com.
Cautionary Statements And Risk Factors That May Affect Future Results
This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements typically express or involve discussion as to expectations, beliefs, plans, objectives, assumptions or future events or performance and often can be identified by the use of words such as ""may," "plan," "will," "expect," "believe," "anticipate," "estimate," and similar terms.
Although NextEra Energy, Inc. (NextEra) believes that its expectations are reasonable, because forward-looking statements are subject to certain risks and uncertainties, it can give no assurance that the forward-looking statements contained in this press release will prove to be correct, including NextEra's expectations with respect to the Rhode Island State, Blythe, Calhoun, Cherokee and Doswell Energy Centers. Important factors could cause NextEra's actual results to differ materially from those projected in the forward-looking statements in this press release. Factors that could have a significant impact on NextEra's operations and financial results, and could cause NextEra's actual results or outcomes, both generally and specifically with respect to the Rhode Island State, Blythe, Calhoun, Cherokee and Doswell Energy Centers, to differ materially from those discussed in the forward-looking statements include, among others:
- Inability to complete the sale of the Rhode Island State Energy Center or the sale of the Blythe, Calhoun, Cherokee and Doswell Energy Centers due to the failure to satisfy all conditions precedent to closing of each sale
- Inability to complete construction of, or capital improvements to, other NextEra power generation facilities
- Inability to obtain all regulatory approvals and third party consents required for the sale of the Rhode Island State Energy Center and the sale of the Blythe, Calhoun, Cherokee and Doswell Energy Centers
- Inability to obtain the supplies necessary for the operation and maintenance of the Rhode Island State, Blythe, Calhoun, Cherokee and Doswell Energy Centers or for the construction, operation, and maintenance of other NextEra power generation facilities
- Inability to hire and retain skilled labor required for the operation of the Rhode Island State, Blythe, Calhoun, Cherokee and Doswell Energy Centers or other NextEra power generation facilities
- Changes in laws, regulations, governmental policies and regulatory actions regarding the energy industry and environmental matters
- Failure of each purchaser to comply with the respective financial terms governing the sale of the Rhode Island State Energy Center and the sale of the Blythe, Calhoun, Cherokee and Doswell Energy Centers
- Inability of NextEra or its affiliates to access capital markets or maintain their current credit ratings
- Failure of NextEra power generating facilities to generate the expected amount of electric generation
- General economic conditions
- Hazards customary to the operation and maintenance of power generation facilities, including unanticipated outages
- Unusual or adverse weather conditions, including natural disasters
- Transmissions constraints or other factors limiting NextEra's ability to deliver energy from NextEra's power generation facilities
- Volatility in the price of energy
- Failure of NextEra customers to perform under contracts
- Increased competition in the power industry
- Changes in the wholesale power markets
- Costs and other effects of legal and administrative proceedings
- Terrorism or other catastrophic events
These foregoing factors should be considered in connection with information regarding risks and uncertainties that may affect NextEra's future results included in NextEra's filings with the Securities and Exchange Commission (SEC), which are available at the SEC's website at www.sec.gov.
Any forward-looking statement speaks only as of the date on which such statement is made, and NextEra undertakes no obligation to update any forward-looking statement to reflect events or circumstances, including, but not limited to, unanticipated events, after the date on which such statement is made, unless otherwise required by law. New factors emerge from time to time and it is not possible for management to predict all of such factors, nor can it assess the impact of each such factor on the business or the extent to which any factor, or combination of facts, may cause actual results to differ materially from those contained or implied in any forward-looking statement.
SOURCE NextEra Energy Resources, LLC