Next Era selling Ontario Wind & Solar

Beyond words…..

DSCN1859
Wind Turbines Summerhaven project- Haldimand County

NextEra selling Ontario wind & solar assets

NextEra Energy Partners, LP announced that it has entered into a definitive agreement with Canada Pension Plan Investment Board (CPPIB) for the sale of its portfolio of wind and solar generation assets in Ontario, Canada, for a total consideration of about $582.3 million. This includes the net present value of the O&M origination fee, subject to customary working capital and other adjustments, plus the assumption by the purchaser of approximately $689 million USD in existing debt.

Wind turbines
The transaction includes the sale of six fully contracted wind and solar assets with an average contract life of about 16 years.

“We are pleased to reach this agreement with CPPIB for the sale of our Canadian portfolio, which we expect will be accretive to NextEra Energy Partners’ long-term growth,” said Jim Robo, chairman and chief executive officer. “The sale of these assets, at a very attractive 10-year average CAFD yield of 6.6%, including the present value of the O&M origination fee, highlights the underlying strength of the partnership’s renewable portfolio.”

An affiliate of NextEra Energy Resources will continue to operate all of the facilities included in the transaction under a 10-year services agreement with CPPIB.

As discussed during our earnings call in January, we expect the sale of the Canadian portfolio to enable us to recycle capital back into U.S. assets, which benefit from a longer federal income tax shield and a lower effective corporate tax rate, allowing NextEra Energy Partners to retain more CAFD in the future for every $1 invested. We expect to accretively redeploy the proceeds from this transaction to acquire higher-yielding U.S. assets from either third parties or NextEra Energy Resources,” added Robo.

The transaction includes the sale of six fully contracted wind and solar assets, with an average contract life of approximately 16 years and 10-year average CAFD of $38.4 million. Located in Ontario, the portfolio has a combined total generating capacity of approximately 396 MW and consists of:
◾Bluewater, a 59.9-MW wind generating facility;
◾Conestogo, a 22.9-MW wind generating facility;
◾Jericho, a 149-MW wind generating facility;
◾Summerhaven, a 124.4-MW wind generating facility;
◾Moore, a 20-MW solar energy generating facility; and
◾Sombra, a 20-MW solar energy generating facility.

NextEra Energy Partners expects the sale to close during the second quarter of 2018. The transaction is subject to receipt of regulatory approvals and satisfaction of customary closing conditions.

NextEra Energy Partners continues to expect a Dec. 31, 2018, run rate for adjusted EBITDA of $1.00 billion to $1.15 billionand CAFD of $360 million to $400 million, reflecting calendar year 2019 expectations for the forecasted portfolio at year-end 2018.

Citi and CIBC Capital Markets are serving as financial advisors to NextEra Energy, and McCarthy Tétrault LLP and Gowling WLG (Canada) LLP are legal counsel.

READ ARTICLE

3 thoughts on “Next Era selling Ontario Wind & Solar”

  1. According to the (Ontario) auditor general’s office (2011)
    Wind generators operate at 28% capacity factor but have only 11% availability at peak demand due to lower wind output in the summer. Solar generators operate at just 13% to 14% capacity factor on aver-age for the year. – The power-generating capacity of current wind and solar technology is much lower than other energy sources.
    The production for wind is 28% of nameplate capacity = 350MW X .28=98 MW. The production from a 40 MW solar facility = 40MW X .13=5.2 MW.
    So we have Problems with production, problems with limited life span, problems with bird and bat kills, problems with decommissioning and non-recyclable toxic waste……

  2. Why the hell is Canada Pension Board making deals with NEXTERROR! This is very scary, there will no money left for Canadians to retire. The tax payer ultimately will pat for this we all know it.
    This is not a good company at all, after cutting down the tree with the eagles nest in it with no remorse in Southwestern Ontario.
    BAD IDEA!!

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google+ photo

You are commenting using your Google+ account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s