ConEd in 150MW deal with Sempra
A unit of utility giant Consolidated Edison will acquire 50% interest in two 150MW solar PV plants located in Arizona and Nevada from Sempra US Gas & Power
Terms of the sale were not disclosed.
Mesquite Solar I was completed last December. Power from the facility, located near Phoenix, is being sold to Pacific Gas & Electric (PG&E)under a 20-year contract. Mesquite Solar 1 generates enough clean electricity for about 56,000 homes.
The 92MW Phase I of Copper Mountain Solar 2 is in commercial operation, with the 58MW second phase due on line in 2015. PG&E also is buying the power under a 25-year contract.
Sempra will continue to provide operations and maintenance services to both plants.
The agreement between Sempra and ConEdison Development is subject to approvals from the US Energy Department (DOE) and regulatory agencies. In September 2011, DOE’s Loan Program Office awarded Mesquite Solar 1 a $337m loan guarantee that enabled Sempra to build the plant.
Sempra and ConEd say they anticipate those approvals in the second half of this year.
"This strategic partnership bolsters Sempra US Gas & Power's ongoing plan to improve its financial returns, deconsolidate debt and redeploy the proceeds from the transaction into new renewable growth projects," says Kevin Sagara, vice president of renewables and corporate development.
ConEd is one of the nation's largest investor-owned energy companies, with approximately $13bn in annual revenues and $40bn in assets.