JUNO BEACH, Fla., Nov. 27, 2015 /PRNewswire/ -- NextEra Energy
Resources, LLC, the competitive energy subsidiary of NextEra
Energy, Inc. (NYSE:NEE), today announced that one of its
subsidiaries, La Frontera Ventures LLC, has entered into an
agreement to sell its ownership interest in its Forney and Lamar generating assets to an affiliate of
Energy Future Holdings (EFH). The aggregate purchase price is
approximately $1.59 billion,
including estimated working capital at closing.
The EFH affiliate has already received orders from the EFH
bankruptcy court approving the purchase of the assets and the
funding of the purchase price through the affiliate's existing
debtor-in-possession credit facility.
The transaction includes the 1,912-megawatt (MW) Forney Energy
Center, a natural gas-fired facility located in Forney, Texas, that began commercial operation
in 2003 and the 1,076-MW Lamar Energy Center, a natural gas-fired
facility located in Paris, Texas,
that began commercial operation in 2000.
"This transaction enables us to further optimize our power
generation assets and is consistent with our strategy of reducing
our merchant exposure while recycling capital into our growing
long-term contracted asset portfolio," said Armando Pimentel, president and CEO of NextEra
Energy Resources.
A NextEra Energy Resources' affiliate will continue to operate
both of the facilities included in the sale for an initial period
of up to one year. The transaction is expected to close in the
first quarter of 2016, pending the receipt of necessary regulatory
approvals and satisfaction of other customary closing
conditions.
Following the closing of the sale, NextEra Energy Resources will
continue to own and operate a diverse mix of clean generating
assets in 25 states, including Texas, and Canada, with a combined capacity of
approximately 17,000 MW.
Citi is serving as financial advisor to NextEra Energy
Resources, and Hogan Lovells is legal counsel.
About NextEra Energy Resources
NextEra Energy
Resources, LLC (together with its affiliated entities, "NextEra
Energy Resources"), is a clean energy leader and is one of the
largest wholesale generators of electric power in the U.S., with
approximately 19,777 megawatts of generating capacity, which
includes megawatts associated with noncontrolling interests related
to NextEra Energy Partners, LP (NYSE: NEP), primarily in 25 states
and Canada as of year-end 2014.
NextEra Energy Resources, together with its affiliated entities, is
the world's largest generator of renewable energy from the wind and
sun. The business operates clean, emissions-free nuclear power
generation facilities in New
Hampshire, Iowa and
Wisconsin as part of the NextEra
Energy nuclear fleet, which is one of the largest in the United States. NextEra Energy Resources,
LLC is a subsidiary of Juno Beach,
Fla.-based NextEra Energy, Inc. (NYSE: NEE). For more
information, visit www.NextEraEnergyResources.com.
Cautionary Statements And Risk Factors That
May Affect Future Results
This news release contains "forward-looking statements" within
the meaning of the safe harbor provisions of the Private Securities
Litigation Reform Act of 1995. Forward-looking statements are
not statements of historical facts, but instead represent the
current expectations of NextEra Energy, Inc. (together with its
subsidiaries, NextEra Energy) regarding future operating results
and other future events, many of which, by their nature, are
inherently uncertain and outside of NextEra Energy's control.
Forward-looking statements in this press release include, among
others, statements concerning adjusted earnings per share
expectations and future operating performance, and statements
concerning future dividends. In some cases, you can identify
the forward-looking statements by words or phrases such as "will,"
"may result," "expect," "anticipate," "believe," "intend," "plan,"
"seek," "aim," "potential," "projection," "forecast," "predict,"
"goals," "target," "outlook," "should," "would" or similar words or
expressions. You should not place undue reliance on these
forward-looking statements, which are not a guarantee of future
performance. The future results of NextEra Energy and its
business and financial condition are subject to risks and
uncertainties that could cause actual results to differ materially
from those expressed or implied in the forward-looking statements,
or may require it to limit or eliminate certain operations.
These risks and uncertainties include, but are not limited to, the
following: effects of extensive regulation of NextEra
Energy's business operations; inability of NextEra Energy to
recover in a timely manner any significant amount of costs, a
return on certain assets or a reasonable return on invested capital
through base rates, cost recovery clauses, other regulatory
mechanisms or otherwise; impact of political, regulatory and
economic factors on regulatory decisions important to NextEra
Energy; disallowance of cost recovery based on a finding of
imprudent use of derivative instruments; effect of any reductions
to or elimination of governmental incentives that support utility
scale renewable energy projects or the imposition of additional
taxes or assessments on renewable energy; impact of new or revised
laws, regulations or interpretations or other regulatory
initiatives on NextEra Energy; effect on NextEra Energy of
potential regulatory action to broaden the scope of regulation of
over-the-counter (OTC) financial derivatives and to apply such
regulation to NextEra Energy; capital expenditures, increased
operating costs and various liabilities attributable to
environmental laws, regulations and other standards applicable to
NextEra Energy; effects on NextEra Energy of federal or state laws
or regulations mandating new or additional limits on the production
of greenhouse gas emissions; exposure of NextEra Energy to
significant and increasing compliance costs and substantial
monetary penalties and other sanctions as a result of extensive
federal regulation of its operations; effect on NextEra Energy of
changes in tax laws and in judgments and estimates used to
determine tax-related asset and liability amounts; impact on
NextEra Energy of adverse results of litigation; effect on NextEra
Energy of failure to proceed with projects under development or
inability to complete the construction of (or capital improvements
to) electric generation, transmission and distribution facilities,
gas infrastructure facilities or other facilities on schedule or
within budget; impact on development and operating activities of
NextEra Energy resulting from risks related to project siting,
financing, construction, permitting, governmental approvals and the
negotiation of project development agreements; risks involved in
the operation and maintenance of electric generation, transmission
and distribution facilities, gas infrastructure facilities and
other facilities; effect on NextEra Energy of a lack of growth or
slower growth in the number of customers or in customer usage;
impact on NextEra Energy of severe weather and other weather
conditions; threats of terrorism and catastrophic events that could
result from terrorism, cyber attacks or other attempts to disrupt
NextEra Energy's business or the businesses of third parties;
inability to obtain adequate insurance coverage for protection of
NextEra Energy against significant losses and risk that insurance
coverage does not provide protection against all significant
losses; a prolonged period of low gas and oil prices could impact
NextEra Energy's gas infrastructure business and cause NextEra
Energy to delay or cancel certain gas infrastructure projects and
for certain existing projects to be impaired, risk of increased
operating costs resulting from unfavorable supply costs necessary
to provide full energy and capacity requirement services; inability
or failure to manage properly or hedge effectively the commodity
risk within its portfolio; potential volatility of NextEra Energy's
results of operations caused by sales of power on the spot market
or on a short-term contractual basis; effect of reductions in the
liquidity of energy markets on NextEra Energy's ability to manage
operational risks; effectiveness of NextEra Energy's risk
management tools associated with its hedging and trading procedures
to protect against significant losses, including the effect of
unforeseen price variances from historical behavior; impact of
unavailability or disruption of power transmission or commodity
transportation facilities on sale and delivery of power or natural
gas; exposure of NextEra Energy to credit and performance risk from
customers, hedging counterparties and vendors; failure of
counterparties to perform under derivative contracts or of
requirement for NextEra Energy to post margin cash collateral under
derivative contracts; failure or breach of NextEra Energy's
information technology systems; risks to NextEra Energy's retail
businesses from compromise of sensitive customer data; losses from
volatility in the market values of derivative instruments and
limited liquidity in OTC markets; impact of negative publicity;
inability to maintain, negotiate or renegotiate acceptable
franchise agreements; increasing costs of health care plans; lack
of a qualified workforce or the loss or retirement of key
employees; occurrence of work strikes or stoppages and increasing
personnel costs; NextEra Energy's ability to successfully identify,
complete and integrate acquisitions, including the effect of
increased competition for acquisitions; NextEra Energy Partners,
LP's (NEP's) acquisitions may not be completed and, even if
completed, NextEra Energy may not realize the anticipated benefits
of any acquisitions; environmental, health and financial risks
associated with ownership and operation of nuclear generation
facilities; liability of NextEra Energy for significant
retrospective assessments and/or retrospective insurance premiums
in the event of an incident at certain nuclear generation
facilities; increased operating and capital expenditures at nuclear
generation facilities resulting from orders or new regulations of
the Nuclear Regulatory Commission; inability to operate any owned
nuclear generation units through the end of their respective
operating licenses; liability for increased nuclear licensing or
compliance costs resulting from hazards, and increased public
attention to hazards, posed to owned nuclear generation facilities;
risks associated with outages of owned nuclear units; effect of
disruptions, uncertainty or volatility in the credit and capital
markets on NextEra Energy's ability to fund its liquidity and
capital needs and meet its growth objectives; inability to maintain
current credit ratings; impairment of liquidity from inability of
credit providers to fund their credit commitments or to maintain
their current credit ratings; poor market performance and other
economic factors that could affect NextEra Energy's defined benefit
pension plan's funded status; poor market performance and other
risks to the asset values of nuclear decommissioning funds; changes
in market value and other risks to certain of NextEra Energy's
investments; effect of inability of NextEra Energy subsidiaries to
pay upstream dividends or repay funds to NextEra Energy or of
NextEra Energy's performance under guarantees of subsidiary
obligations on NextEra Energy's ability to meet its financial
obligations and to pay dividends on its common stock; and effect of
disruptions, uncertainty or volatility in the credit and capital
markets of the market price of NextEra Energy's common stock.
NextEra Energy discusses these and other risks and uncertainties in
its annual report on Form 10-K for the year ended December 31, 2014 and other SEC filings, and this
news release should be read in conjunction with such SEC filings
made through the date of this news release. The
forward-looking statements made in this news release are made only
as of the date of this news release and NextEra Energy undertakes
no obligation to update any forward-looking statements.
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SOURCE NextEra Energy Resources, LLC