M&A News

Dynegy plans to buy Duke Energy’s non-regulated Midwest Commercial Generation Business for $2.8 billion in cash, which includes ownership interests in 11 power plants and Duke Energy Retail Sales, the company's retail business in Ohio. The completion of the transaction is conditioned on approval from FERC, the expiration of the waiting period under the Hart-Scott Rodino Act, and the release of certain credit support obligations. Closing is expected to occur in three to six months.

Echelon signed a definitive agreement to sell its grid operations to S&T AG, a publicly traded European IT systems provider. The companies expect the deal to close by the end of the year. Under the terms of the agreement, Echelon will receive approximately $5 million in upfront consideration, dependent in part on the value of net assets at closing. Echelon will also become a supplier of its narrowband high-reliability power line communications chips to S&T for use in their smart meters and related products.

Calpine plans to purchase a nominal 809-MW, combined-cycle power plant and related plant inventory from Exelon for $530 million, subject to working capital adjustments. The natural gas-fired plant is located in North Weymouth, Massachusetts, 12 miles southeast of Boston. Built in 2003, Fore River Generating Station features two Mitsubishi 501G combustion turbines, two heat recovery steam generators and one Mitsubishi steam turbine. Calpine expects the transaction to close in the fourth quarter of 2014 and intends to fund the transaction with cash on hand.

Canadian Solar Solutions completed the sale of Good Light, a 10-MW solar power plant located in the town of Kawartha Lakes, Ontario, Canada, valued at over $60.3 million (USD) to a BluEarth Renewables subsidiary. This is the second of four planned solar projects being acquired by BluEarth from Canadian Solar, totaling 38.5 MW AC.

AES entered into an agreement with SYND Holdco Limited, a joint venture of Greencoat UK Wind PLC and Swiss Life Funds Global Infrastructure Opportunities to sell 100% of its equity interests in four operating wind projects in the United Kingdom, totaling 87.5 MW, for $160 million, subject to customary purchase price adjustments. This transaction includes four operating wind projects in the United Kingdom: 28.6-MW Drone Hill; 22-MW North Rhins; 20.5-MW Sixpenny Wood; and 16.4-MW Yelvertoft.

The New Mexico Public Regulation Commission (PRC) decided unanimously that TECO Energy's pending stock acquisition of New Mexico Gas Intermediate (NMGI), the parent company of New Mexico Gas Co. (NMGC), is in the public interest and can proceed. The parties in the case reached a settlement on the acquisition, and the PRC staff did not oppose it. NMGC serves more than 513,000 gas customers throughout New Mexico.

Exelon and Integrys Energy Group entered into a definitive agreement for Exelon to purchase Integrys Energy Services, a competitive retail electricity and natural gas subsidiary serving approximately 1.2 million customers. Integrys Energy Services will become part of Exelon's Constellation business unit. Exelon will pay $60 million for the Integrys retail operations, plus adjusted net working capital at the time of closing. The transaction does not include Integrys' energy assets - primarily solar - which will remain a part of Integrys Energy Group.

Pattern Energy Group acquired the 200-MW Logan's Gap wind project located in Comanche County, Texas, from Pioneer Green Energy. Pioneer Green Energy began work in 2013 and executed a 10-year PPA with Wal-Mart stores, for approximately 60% of the project's expected production. Pattern Development expects to arrange financing for and start full construction of the project in the fourth quarter of 2014.

Duke Energy Progress (Duke) and the North Carolina Eastern Municipal Power Agency (NCEMPA) approved an agreement for Duke to purchase the Power Agency’s ownership in certain generating assets. NCEMPA currently maintains partial ownership interest in several Duke Energy Progress plants, totaling approximately 700 MW, including: Brunswick Nuclear Plant Units 1 and 2, Mayo Plant, Roxboro Plant Unit 4 and the Harris Nuclear Plant.

PSEG Solar Source acquired the El Paso Solar Energy Center, a 13-MW solar energy facility near El Paso, TX from juwi solar (JSI). The project was originally developed by JSI and has a 30-year PPA with El Paso Electric.The $22 million acquisition will increase PSEG's Solar Source's portfolio capacity to 106 MW. JSI is the EPC contractor for the project and will operate the project for PSEG Solar Source upon completion. Construction has already commenced and is expected to be completed by year's end. The project will use JA solar panels.