Alliant Energy will sell its Minnesota electric distribution business

Sponsored by

Alliant Energy Corp. signed agreements to sell its Minnesota electric distribution and natural gas businesses. The power distribution business in the state will be sold to Southern Minnesota Energy Cooperative (SMEC), a combined group of 12 neighboring electric cooperatives.

SMEC and Minnesota Energy Resources currently serve customers adjacent to Alliant Energy's utility operations in the state. SMEC-member utilities currently serve nearly 135,000 electric customers and Minnesota Energy Resources provides natural gas service to about 214,000 customers in Minnesota.

Alliant Energy serves 43,000 electric customers and 10,600 natural gas customers spread over a footprint of nearly 15,000 square miles in southern Minnesota. Alliant Energy's Minnesota operations represent less than four percent of the company's overall customer base.

Alliant's Minnesota natural gas business will be sold to Minnesota Energy Resources Corp., a unit of Integrys Energy Group, Inc.

The combined sales price of the electric and natural gas assets is about $128 million, subject to customary closing adjustments. The electric sales agreement also includes a ten-year purchased power agreement (PPA) between SMEC and Alliant Energy's Iowa electric utility.

With the PPA agreement, Alliant Energy's current Minnesota electric customers will continue to receive energy from a diverse portfolio of power generation resources while future electric generation needs and plans for Alliant Energy's Iowa utility are unchanged. Alliant Energy will continue to operate its electric generation facilities in Minnesota. 

The sales of the company assets require state and federal approvals, which are expected to occur in six to twelve months. Wells Fargo Securities, LLC served as Alliant Energy's exclusive financial advisor on the electric transaction.

Sponsored by

CURRENT ARTICLES

Appalachian Power requests energy efficiency programs for Virginia

10/24/2014

Appalachian expects the six programs to save about 43,000 MWh in energy usage

Electric distribution investment up from past decades

10/24/2014 Electricity distribution systems differ from transmission systems, which have also experienced increased investment over t...

Toledo Edison builds transmission line to serve Home Depot warehouse

10/24/2014

The new 1.65-million square foot facility will be used primarily for online order fulfillment 

Rwanda to switch on peat-fired power plant

10/24/2014

The $36 million project will produce cheaper electricity compared to hydro or thermal power 

Has privatization failed Texas utility customers?

10/24/2014 Relative electricity prices have increased dramatically, and dangerously lower electrical system reliability is the result...

ETT proposes Del Sol to JackieHoward transmission line in South Texas

10/23/2014 Electric Transmission Texas is planning to construct a new $24.5 million, 345-kV transmission line to connect the 200 MW L...

Gamesa delivers 74 MW wind farm to Grupo Mexico

10/23/2014 Gamesa currently has 1 GW of installed wind capacity in Mexico, with another 70 MW in the pipeline at the Dos Arbolitos pr...

ON DEMAND WEBCASTS

Architecting Communication Networks for Smart Grids

This webinar will provide the essentials of communication networking to meet the challenges of th...

The Power of Behavioral Design: Lessons for Energy Efficiency Providers

Behavioral design principles are key differentiators when it comes to influencing consumer behavi...

3D BIM for Substations—Driving Efficiency from Design Through Operation and Maintenance

In this webinar, PESTECH will describe their transition to intelligent substation design and its ...

High Availability Networks. Application of IEC6439-3 Protocols for IEC61850 Process Bus implementation

Networks can now be built for the first time with genuinely uninterrupted data communication betw...

Understanding Moisture Dynamics in Power Transformers

While the need to measure moisture in power transformers has been well documented and is universa...

EL&P BUYER'S GUIDE PRODUCTS

MITEM Corp

Provides CRM solutions for regulated U.S. public utilities. The product, MitemView integrates differently designed systems to share critical data a...

Resources on Demand

Manages resource requests, tracks personnel movements, and supports lodging/logistics during a power restoration event.

Smart Grids

Quanta is contributing to its customers' smart grid initiatives by installing technology on power networks to provide energy management solutions f...

Horizontal Directional Drilling

With 28 small, mid-sized and large drilling rigs, Quanta Pipeline Services is one of the largest horizontal directional contractors in the world fo...

FEATURED ENERGY JOBS

View more Job Listings >>

POWERGRID International

April 2014
Volume 19, Issue 4
1404pg-cover

ELECTRIC LIGHT & POWER

January 2014
cover