Southern Company has entered into agreements to sell Gulf Power Company, Florida City Gas and the entities holding Southern Power’s interests in Plant Oleander and Plant Stanton to NextEra Energy for approximately $6.475 billion.
“This sale provides Southern Company the opportunity to deliver great value to our organization, bolster our financial profile and continue to build the future of energy as one of America’s premier energy companies,” said Thomas A. Fanning, chairman, president and CEO of Southern Company. “These Florida businesses are being sold at a price that provides substantial value to our stockholders, while entrusting the customers of these exceptional franchises to a high-quality utility company that has a well-established presence in the state.”
Proceeds from these transactions will be used to reduce debt and improve Southern Company’s balance sheet.
Subject to receipt of all necessary regulatory approvals, the sale of Florida City Gas is expected to close during the third quarter of 2018, with the sale of Gulf Power and Southern Power’s interests in Plant Stanton and Plant Oleander expected to close during the first half of 2019.