Summary
NextEra Energy Inc. (NEE), through its subsidiary FPL Energy, LLC, announced a significant strategic acquisition on July 5, 2005. FPL Energy has entered into an agreement to purchase a 70% stake in the Duane Arnold Energy Center, a 598-megawatt nuclear power plant located in Iowa, from Alliant Energy Corporation's subsidiary, Interstate Power and Light Company (IP&L). This acquisition is expected to bolster NEE's renewable and clean energy portfolio and enhance its generating capacity. The transaction, valued at approximately $387 million, includes nuclear fuel and inventory. FPL Energy will assume operational management and future decommissioning responsibilities, with $188 million in decommissioning funds to be transferred at closing. The power generated from FPL Energy's share will be sold back to IP&L under a long-term contract with escalating prices. The deal is subject to regulatory approvals and is anticipated to close in late Q4 2005 or early Q1 2006.
Key Highlights
- 1FPL Energy (a subsidiary of NEE) to acquire a 70% interest in the Duane Arnold Energy Center, a 598 MW nuclear power plant.
- 2The acquisition is from Interstate Power and Light Company (IP&L), a subsidiary of Alliant Energy Corporation.
- 3Transaction value is approximately $387 million, inclusive of nuclear fuel and inventory.
- 4FPL Energy will assume operational management and ultimate decommissioning of its share of the plant.
- 5Approximately $188 million in decommissioning funds will be transferred to FPL Energy at closing.
- 6Power generated from FPL Energy's stake will be sold to IP&L under a long-term contract with escalating pricing.
- 7The deal is subject to regulatory approvals and expected to close by Q1 2006.