Jackson, MI, April 5, 2007 -- CMS Energy and Petroloeos de Venezuela S.A., which is owned by the Bolivarian Republic of Venezuela, signed a purchase and sale agreement for the sale of the company's interest in Sistema Electrico de Nueva Esparta C.A. (SENECA), including its 88 percent equity ownership, certain associated generating equipment, and other assets for $105.5 million.
SENECA is an electric utility that serves the state of Nueva Esparta in Venezuela. SENECA provides electric service to about 120,000 customers on Margarita and Coche islands off the northern coast of Venezuela. It owns and operates generating units with a capacity of 220 megawatts. CMS Energy purchased a controlling interest in SENECA in 1998. It was CMS Energy's sole business in Venezuela.
Closing is expected to occur by the end of April 2007. Proceeds from the sale will be used to reduce parent debt and invest in CMS Energy's Michigan utility, Consumers Energy.
For more news and exclusive features from Utility Automation & Engineering T&D and Electric Light & Power online, please click here.