14 February 2007 – CMS Energy and Venezuela have signed a memorandum of understanding (MoU) for the sale of the company’s interest in Sistema Electrico de Nueva Esparta, (SENECA), including its 88 per cent stake, certain associated generating equipment and other assets for $105.5m.
The MoU is expected to lead to sale closing by 31 March, 2007. Among other necessary conditions to closing, the sale is contingent upon the negotiation and execution of a definitive purchase sale agreement, completion of satisfactory due diligence by the government, and approval by CMS Energy’s Board of Directors.
SENECA is a private electric utility that serves the state of Nueva Esparta in Venezuela through a concession agreement with the government of Venezuela. SENECA provides electric service to about 120 000 customers on Margarita and Coche islands off the northern coast of Venezuela.
It owns and operates generating units with a capacity of 240 MW. CMS Energy purchased a controlling interest in SENECA in 1998. It is CMS Energy’s sole business in Venezuela.
CMS Energy is a Michigan-based company that has as its primary business operations an electric and natural gas utility, natural gas pipeline systems, and independent power generation.