FirstEnergy sells minority stake in transmission business to Brookfield
FirstEnergy Corp. sold a 19.9 percent minority equity stake of FirstEnergy Transmission (FET) to Brookfield Super-Core Infrastructure Partners for $2.375 billion.
FirstEnergy holds on to an 80.1 percent equity interest in FET, and FirstEnergy’s workforce will continue to operate the company’s transmission system. The deal was first announced in November 2021. Blackstone Infrastructure Partners made a $1 billion equity investment in FirstEnergy common stock at that time.
FirstEnergy uses the combined $3.4 billion in proceeds from these deals to strengthen its balance sheet, fund its capital program and address its equity plans. FirstEnergy’s capital investment program of $17 billion from 2021 through 2025 focuses on developing a more resilient and modern grid and prioritizes emerging technologies, electric vehicle infrastructure, renewable generation, and programs to help customers optimize their energy use.
“With the completion of these transformative investments, FirstEnergy is well-positioned to continue delivering financial and operational excellence, drive our long-term strategies to support smart grid and clean energy initiatives, and transform our company into a more innovative, resilient and industry-leading organization,” FirstEnergy President and CEO Steven Strah said.
FirstEnergy serves customers in Ohio, Pennsylvania, New Jersey, West Virginia, Maryland, and New York. The company’s transmission subsidiaries operate more than 24,000 miles of transmission lines that connect the Midwest and Mid-Atlantic regions.
“We are pleased to have completed this transaction and to see this marquee, high-quality investment in our portfolio,” Eduardo Salgado, managing partner in Brookfield’s Infrastructure Group and head of Brookfield Super-Core Infrastructure Partners, said. “Our partnership with FirstEnergy will position us well to capture unique capital investment and value creation opportunities over the long-term in-line with our mutual objectives around the decarbonization and electrification of the economy.”
