(Source: Datamonitor)
Integrys Energy Group has announced that Integrys Energy Services of Canada, a subsidiary of its non-regulated subsidiary, Integrys Energy Services, has signed an agreement to sell nearly all of its Canadian natural gas and electric power contract portfolio to Shell Energy North America Canada, a subsidiary of Shell Energy North America.
The transaction, which requires certain contractual consents and necessary regulatory approvals, is expected to close in the third quarter of 2009.
Upon close, the transaction is expected to result in an incremental reduction of Integrys Energy Group's collateral requirements by an estimated $300 million.
The portion of the Canadian wholesale natural gas operation excluded from this transaction is a 2Bcf natural gas storage contract, which Integrys plans to divest in a separate transaction.
Charles Schrock, president and CEO of the Integrys Energy Group, said: "This sale is one step on the way to our objective of reducing the collateral requirements and capital investment for Integrys Energy Services.
"This deal, as part of our structured capital redeployment process, will reduce our collateral requirements, strengthening our balance sheet to support the growth of our core regulated utilities business."
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