Summary
Consolidated Edison, Inc. (Con Edison) has filed an 8-K report detailing a significant transaction involving its subsidiary, Consolidated Edison Development, Inc. (Con Edison Development). The company announced the completion of the first stage of selling its ownership interests in several power generating projects, totaling 1,706 megawatts (MW). This initial phase involved the divestiture of interests in 1,181 MW of generating projects, including Rock Springs, Ocean Peaking Power, CEEMI, and Lakewood. This strategic sale is expected to generate substantial cash proceeds for Con Edison, with an estimated $572 million in net cash after taxes and transaction expenses. Furthermore, the company anticipates recognizing an after-tax gain of approximately $176 million, net of expenses. The remaining portion of this divestiture transaction is slated for completion in June 2008, indicating a continued focus on portfolio management and potentially a shift in its asset base.
Key Highlights
- 1Consolidated Edison Development, Inc. completed the first stage of selling ownership interests in power generating projects.
- 2The divested projects have an aggregate capacity of 1,706 megawatts (MW).
- 3The first stage involved selling interests in 1,181 MW of generating projects (Rock Springs, Ocean Peaking Power, CEEMI, and Lakewood).
- 4Estimated net cash proceeds from the first stage are approximately $572 million.
- 5An estimated after-tax gain of approximately $176 million is expected from this first stage.
- 6The completion of the remaining transaction is expected in June 2008.
- 7This filing refers to Note N in the company's Form 10-Q for the quarter ended March 31, 2008.