Eversource Energy Closes on the Sale of Uncommitted Offshore Lease Area
07 Septembre 2023 - 10:37PM
Business Wire
Eversource Energy (NYSE: ES) today announced that it has
completed its sale of the uncommitted lease area of approximately
175,000 developable acres located 25 miles off the south coast of
Massachusetts to Ørsted for $625 million in an all-cash
transaction. The transaction, which was announced on May 25, 2023,
closed today following approval from the Committee on Foreign
Investment in the United States.
Eversource and Ørsted today have also announced the execution of
a Tax Equity Capital Contribution Agreement for South Fork Wind.
Eversource will use a portion of the proceeds from the lease area
sale to provide its anticipated tax equity investment for South
Fork Wind. The contribution for Eversource’s new tax equity member
interest is expected to be approximately $545 million. Eversource
expects to recover this tax equity member interest investment
primarily in the form of investment tax credits as turbines are
placed in service for South Fork Wind. These credits will be
utilized to reduce federal tax liability, including refunds
expected over the next nine months. Eversource also expects to
receive approximately $273 million of this contribution as a
distribution from the project prior to its commercial operations
date, as it currently remains a managing member of the project,
along with Ørsted. Construction of South Fork Wind commenced in
early 2022, with commercial operation expected in late 2023.
Eversource’s tax equity investment in South Fork Wind is expected
to close in the third quarter.
“Eversource is fully committed to being a catalyst to the
region’s clean energy transition, with our regulated companies
procuring power from offshore wind as well as building many of the
facilities that will enable more than 9,000 megawatts of offshore
wind generation to reach the homes and businesses of Southern New
England. We share the same goals as the states in which we operate
when it comes to building the clean energy delivery systems of the
future,” said Joe Nolan, Eversource’s president, chief executive
officer, and chairman. “With Ørsted as the 100% owner of this lease
area, we are confident it will play a critical role in
decarbonizing the generation mix of Southern New England and New
York.”
As a result of Eversource completing its Offshore Wind Strategic
Review, Eversource announced that it is in the best long-term
interest of the company to advance the sale of its existing 50
percent interest in its three jointly owned contracted offshore
wind projects (South Fork Wind, Revolution Wind, and Sunrise Wind)
with a total capacity of 1,758 MW. This process continues to
progress and Eversource expects to announce details of this
transaction soon.
Eversource has engaged Goldman Sachs as its financial advisor to
assist with the transactions and Ropes & Gray serves as its
legal counsel.
Eversource Energy operates New England’s largest energy delivery
system and serves approximately 4.4 million electric, natural gas
and water utility customers in Connecticut, Massachusetts, and New
Hampshire.
This document includes statements concerning Eversource Energy’s
expectations, beliefs, plans, objectives, goals, strategies,
assumptions of future events, future financial performance or
growth and other statements that are not historical facts,
including the anticipated timing for the closing the tax equity
investment, as well as the anticipated contribution and
distribution amounts and potential future tax credits and the
timing for any update on the potential sale of Eversource’s
offshore wind investment. These statements are “forward-looking
statements” within the meaning of the Private Securities Litigation
Reform Act of 1995. Generally, readers can identify these
forward-looking statements through the use of words or phrases such
as “estimate,” “expect,” “anticipate,” “intend,” “plan,” “project,”
“believe,” “forecast,” “should,” “could” and other similar
expressions. Forward-looking statements involve risks and
uncertainties that may cause actual results or outcomes to differ
materially from those included in the forward-looking statements.
Forward-looking statements are based on the current expectations,
estimates, assumptions or projections of management and are not
guarantees of future performance. These expectations, estimates,
assumptions or projections may vary materially from actual results.
Accordingly, any such statements are qualified in their entirety by
reference to, and are accompanied by, the following important
factors that may cause our actual results or outcomes to differ
materially from those contained in our forward-looking statements,
including, but not limited to: cyberattacks or breaches, including
those resulting in the compromise of the confidentiality of our
proprietary information and the personal information of our
customers; disruptions in the capital markets or other events that
make our access to necessary capital more difficult or costly;
changes in economic conditions, including impact on interest rates,
tax policies, and customer demand and payment ability; ability or
inability to commence and complete our major strategic development
projects and opportunities; acts of war or terrorism, physical
attacks or grid disturbances that may damage and disrupt our
electric transmission and electric, natural gas, and water
distribution systems; actions or inaction of local, state and
federal regulatory, public policy and taxing bodies; substandard
performance of third-party suppliers and service providers;
fluctuations in weather patterns, including extreme weather due to
climate change; changes in business conditions, which could include
disruptive technology or development of alternative energy sources
related to our current or future business model; contamination of,
or disruption in, our water supplies; changes in levels or timing
of capital expenditures; changes in laws, regulations or regulatory
policy, including compliance with environmental laws and
regulations; changes in accounting standards and financial
reporting regulations; actions of rating agencies; and other
presently unknown or unforeseen factors.
Other risk factors are detailed in Eversource Energy’s reports
filed with the Securities and Exchange Commission (SEC). They are
updated as necessary and available on Eversource Energy’s website
at www.eversource.com and on the SEC’s website at www.sec.gov. All
such factors are difficult to predict and contain uncertainties
that may materially affect Eversource Energy’s actual results, many
of which are beyond our control. You should not place undue
reliance on the forward-looking statements, as each speaks only as
of the date on which such statement is made, and, except as
required by federal securities laws, Eversource Energy undertakes
no obligation to update any forward-looking statement or statements
to reflect events or circumstances after the date on which such
statement is made or to reflect the occurrence of unanticipated
events.
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version on businesswire.com: https://www.businesswire.com/news/home/20230907393000/en/
Robert S. Becker (860) 665-3249
Caroline Pretyman 617-424-2460
caroline.pretyman@eversource.com
Eversource Energy (NYSE:ES)
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