Florida Power & Light sells gas subsidiary to Chesapeake Utilities
Florida Power & Light Company (FPL), owned by NextEra Energy, is selling its subsidiary Florida City Gas (FCG) to Chesapeake Utilities Corporation.
The transaction is valued at $923 million, which includes $145 million of intercompany debt. The deal is expected to be completed over the next several months, subject to customary reviews and closing conditions.
“We are pleased that FPL has reached this agreement to sell FCG to Chesapeake Utilities,” John Ketchum, chairman, president, and CEO of NextEra Energy, said. “This transaction allows us to continue our strategy of redeploying capital into our core businesses. I want to thank the FCG team for their hard work and accomplishments and am confident they will continue to be successful in the years to come.”
Florida City Gas serves about 120,000 residential and commercial natural gas customers across eight counties in Florida, including Miami-Dade, Broward, Brevard, Palm Beach, Hendry, Martin, St. Lucie, and Indian River. Its natural gas system includes approximately 3,800 miles of distribution main and 80 miles of transmission pipe.
The deal is expected to be accretive to NextEra Energy earnings immediately upon closing. Long term, NextEra Energyʻs financial expectations remain unchanged following the deal.
