Sempra Energy has completed the divestiture of its U.S. renewables business and non-utility natural gas storage assets, generating approximately $2.5 billion in total cash proceeds.
The firm also completed the sale of its remaining ownership interests in operating and development-stage wind assets to American Electric Power Co. for $584 million in cash, subject to customary post-closing adjustments.
“We have a long and successful track record of actively managing our portfolio, including exiting businesses that are no longer consistent with our strategy,” said Joseph Householder, president and COO Sempra Energy. “The proceeds from the asset sales will be used to pay down debt and redeploy capital to support the strategic growth of Sempra Energy in North America.”
The sale to AEP included approximately 724 megawatts of net operating capacity comprising the following projects: Black Oak Getty Wind in Minnesota and Apple Blossom Wind in Michigan, as well as Sempra Energy's interests in jointly-owned projects with BP Wind Energy: Auwahi Wind in Hawaii (wind and battery storage), Flat Ridge 2 Wind in Kansas, Mehoopany Wind in Pennsylvania, Cedar Creek 2 Wind in Colorado, and Fowler Ridge 2 Wind in Indiana. AEP also acquired all of Sempra Energy's wind projects currently in development.
In February, Sempra Energy completed the sale of its non-utility U.S. natural gas storage facilities to an affiliate of ArcLight Capital Partners for $328 million in cash, subject to post-closing adjustments. In December 2018, Sempra Energy completed the sale of its U.S. solar assets and battery storage development projects, as well as its ownership interest in one wind facility, to Consolidated Edison for approximately $1.6 billion. The company also is in the process of selling its equity interests in its South American businesses, including its 83.6 percent stake in Luz del Sur S.A.A. in Peru and 100 percent stake in Chilquinta Energía S.A. in Chile.