Consolidated Edison Inc.
) have collaborated through their affiliates - Sempra U.S. Gas
& Power and Consolidated Edison Development - for the joint
ownership as well as operation of five solar projects in
California and Nevada. The terms of the deal were not disclosed.
The deal includes Sempra's 250 MW Copper Mountain Solar 3 plant,
currently under construction near Las Vegas, and Con Edison's CED
California Holdings, LLC portfolio comprising four plants. CED
California Holdings went into operation two years back. The
portfolio consists of the 50-MW Alpaugh 50, 20-MW Alpaugh North
and 20-MW White River 1 facilities in Tulare County, and the
20-MW Corcoran 1 facility in Kings County.
Together all the facilities will have a power generating capacity
of 360 MW, all of which have been sold under long-term power
The deal relating to CED California Holdings projects is subject
to regulatory approvals, which are expected to be acquired by the
second quarter of 2014. Post completion, this Sempra
Energy-Consolidated Edison partnership will enable each utility
to own a 50% stake of each plant, thereby spreading risks as well
as opportunities uniformly between the two companies.
Located in Boulder City, NV, the Copper Mountain Solar complex is
currently one of the largest photovoltaic ("PV") solar plants in
the U.S. Completion of the first 125 MW is expected by the end of
2014, with the remaining 125 MW slated for completion by next
year. Post completion, the plant will have the capacity to power
approximately 80,000 homes.
In May 2013, Consolidated Edison announced it would acquire a 50%
stake in two solar farms owned by Sempra U.S. Gas & Power,
under construction in Nevada and Arizona. Each company will own a
50% interest in the two solar facilities, the Copper Mountain
Solar 2 plant and the Mesquite Solar 1 power plant.
These long-standing strategic collaborations will enhance
Consolidated Edison's presence in the U.S. Apart from expanding
its footprint in the renewable energy market, the transactions
will give ConEdison strategic renewable assets that have strong
ConEdison is focused on energy efficiency initiatives and is also
aggressively pursuing an oil-to-gas conversion program that will
lower costs while improving air quality. Additionally, the
company continues to invest heavily in infrastructure
Consolidated Edison and Sempra currently carry a Zacks Rank #3
(Hold). In the near term, we would advise investors to accumulate
their Zacks Rank #1 (Strong Buy) peers
Delta Natural Gas Company, Inc.
Atmos Energy Corp.
ATMOS ENERGY CP (ATO): Free Stock Analysis
DELTA NAT GAS (DGAS): Free Stock Analysis
CONSOL EDISON (ED): Free Stock Analysis
SEMPRA ENERGY (SRE): Free Stock Analysis
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