By Editors of Power Engineering
NextEra Energy has reached an agreement with Southern Company to purchase Gulf Power, Florida City Gas and ownership interests in the Oleander and Stanton gas plants in a transaction valued at $6.475 billion.
The transaction also includes the assumption of $1.4 billion of Gulf Power’s debt. NextEra plans to finance the $5.1 billion purchase through new debt, though the company is expected to maintain $5 billion to $7 billion of excess balance sheet after the sale’s closure in the first half of 2019.
“We are pleased to have reached definitive agreements with Southern Company to acquire Gulf Power and Florida City Gas, along with Southern Company’s Oleander and Stanton facilities,” said Jim Robo, chairman and chief executive officer of NextEra Energy. “These transactions will provide meaningful benefits for the state of Florida, and Gulf Power and Florida City Gas customers, as well as NextEra Energy shareholders. Importantly, these transactions are consistent with our long-standing, disciplined approach of maintaining the strength of our balance sheet and credit ratings, both of which are among the strongest in the industry.”
NextEra pledged to continue making infrastructure investments at both Gulf Power and Florida City Gas.
Gulf Power serves 450,000 customers in eight counties in northwest Florida and holds 9,500 miles of power lines and 2.3 GW of electric generating capacity. Florida City Gas serves 110,000 customers in Miami-Dade, Brevard, St. Lucie and Indian River counties.
The transaction includes a 100 percent ownership stake in the 791-MW Plant Oleander, and a 65 percent ownership stake in the 660-MW Stanton Energy Center.
NextEra Energy also owns Florida Power & Light Company, which serves five million customer accounts in Florida.