21 May 2007 — Williams announced it has entered into an agreement to sell substantially all of its power assets to Bear Energy LP. The agreement includes Williams’ 7,500 MW portfolio of power contracts and certain other assets. Closing of the transaction is expected within the next six months.
The base purchase price in the transaction is $512 million. This amount will be reduced by expected net portfolio cash flows from the April 1 valuation date through the transaction closing date. Williams expects the transaction proceeds will be offset by income taxes, resolution of retained liabilities, costs associated with the transaction and near-term cash-collateral postings.
Williams expects the overall gain or loss associated with its exit from the power business to be nominal, based on portfolio values on April 1. The transaction is subject to the completion of standard closing conditions and certain governmental approvals. Williams will provide certain transition services through year-end.