logo
  Join        Login             Stock Quote

Sempra Energy (SRE) Unit To Sell Block Of Arizona Power Plant To Salt River Project

 December 26, 2012 11:59 AM
 


(By Balaseshan) Sempra Energy (NYSE: SRE) said its subsidiary Sempra U.S. Gas & Power has agreed to sell one 625-megawatt block of its 1,250 MW Mesquite Power natural gas-fired power plant to the Salt River Project (SRP) Agricultural Improvement and Power District for $371 million.

The SRP Board of Directors approved a management proposal to acquire 100% ownership of the 625 MW block and a 50% undivided interest in the infrastructure facilities shared by the two blocks at their November meeting.

The agreement is subject to approvals from the Federal Energy Regulatory Commission and other regulatory agencies. The companies anticipate receiving these approvals in the first quarter of 2013.

[Related -Dividend Roundup: GE, ABT, SRE, IRM, LRY, LHO, BMR, RLJ]

"This strategic sale comes at the right time for Sempra U.S. Gas and Power as we continue to reduce our exposure to the merchant power markets, while also allowing us to put greater emphasis on growing our southeast natural gas portfolio. This transaction will enable us to redeploy capital to expand our growing presence in the natural gas sector," said Jeffrey Martin, president and CEO of Sempra U.S. Gas & Power.

SRP, which is the largest supplier of raw water to the greater-Phoenix metropolitan area, has acquired one of Mesquite Power's two 625 MW power blocks. Each block is comprised of two gas turbines and a steam turbine. As part of the transaction, SRP also will become the operator of both Mesquite units.

[Related -Dividend Roundup: ABT, TGT, DOW, KR, SRE, WU, WPO, NFG, BDMS]

Sempra U.S. Gas & Power, LLC is a developer of renewable energy and natural gas solutions. The company operates solar, wind and natural gas power plants that generate enough electricity for nearly 1 million homes, along with natural gas storage and pipelines and distribution utilities.

SRE is trading up 0.66% at $71.58 on Wednesday. The stock has been trading between $54.46 and $72.87 for the past 52 weeks.

iOnTheMarket Premium
Advertisement

Advertisement


Post Comment -- Login is required to post message
Name:  
Alert for new comments:
Your email:
Your Website:
Title:
Comments:
 

rss feed

Latest Stories

article imageBuffett's Market Indicator Flashes Red, Prepare To Sell

With each passing month, it's becoming evident that the current bull market has slowed from a gallop to a read on...

article imagePBoC joins other major central banks with unconventional monetary policy action

Softer than expected economic growth in China (see discussion) has finally spurred the PBoC into action. read on...

article imageA Buyback Boost?

Are stock buybacks the only thing keeping this bull market read on...

article imageGold Slides On Perfect Storm For Dollar

For all the anticipation surrounding the delivery of the Fed’s statement in the run-up to the September read on...

Advertisement
Popular Articles

Advertisement
Daily Sector Scan
Partner Center



Fundamental data is provided by Zacks Investment Research, and Commentary, news and Press Releases provided by YellowBrix and Quotemedia.
All information provided "as is" for informational purposes only, not intended for trading purposes or advice. iStockAnalyst.com is not an investment adviser and does not provide, endorse or review any information or data contained herein.
The blog articles are opinions by respective blogger. By using this site you are agreeing to terms and conditions posted on respective bloggers' website.
The postings/comments on the site may or may not be from reliable sources. Neither iStockAnalyst nor any of its independent providers is liable for any informational errors, incompleteness, or delays, or for any actions taken in reliance on information contained herein. You are solely responsible for the investment decisions made by you and the consequences resulting therefrom. By accessing the iStockAnalyst.com site, you agree not to redistribute the information found therein.
The sector scan is based on 15-30 minutes delayed data. The Pattern scan is based on EOD data.