By Melodie Warner
Consolidated Edison Inc. (ED) formed a partnership with Sempra
Energy (SRE) that gives the utility company a 50% interest in two
Sempra U.S. Gas & Power solar facilities.
Financial terms weren't disclosed.
Sempra U.S. Gas & Power said it will continue to provide
operations and maintenance services to both 150-megawatt plants,
one near Las Vegas and the other near Phoenix.
"This strategic partnership bolsters Sempra U.S. Gas &
Power's ongoing plan to improve its financial returns,
deconsolidate debt and redeploy the proceeds from the transaction
into new renewable growth projects," said Kevin C. Sagara, vice
president of renewables and corporate development for Sempra U.S.
Gas & Power.
Sempra owns electric and natural-gas utilities in California,
utilities in South America, and natural-gas pipelines and storage
facilities and liquefied-natural-gas terminals in the U.S. and
Mexico. The company's bottom line has been challenged by decade-low
U.S. natural-gas and power prices of late.
Last week, Sempra Energy reached a joint venture agreement with
GDF Suez SA (GSZ.FR), Mitsubishi Corp. (MSBHY, 8058.TO) and Mitsui
& Co. (MITSY, 8306.TO) to develop a liquefied natural-gas
export facility at the site of the Cameron LNG facility in
Louisiana.
Shares of Sempra and ConEd closed Monday at $84.60 and $60.90,
respectively. Both were inactive premarket.
Write to Melodie Warner at melodie.warner@dowjones.com
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