NextEra Energy Inc., the biggest U.S. producer of electricity from wind and sunshine, is planning an initial public offering of a unit that will own and operate renewable power plants.
NextEra Energy Partners LP will hold interests in ten wind and solar projects in North America with a total output of about 990 megawatts, according to a filing today with the U.S. Securities and Exchange Commission. It will trade on the New York Stock Exchange under the symbol NEP. The filing said the offer would raise as much as $50 million, though that figure is included solely to calculate the registration fee.
The company, based in Juno Beach, Florida, is one of at least a dozen developers in North America and Europe, including NRG Energy Inc. and Abengoa SA, that have formed units to own and operate power plants. The strategy reduces capital costs and raises liquidity for developers, and may offer investors long-term contracted cash flow.
NextEra Energy Partners may acquire an additional 1,549 megawatts of renewable power plants from its parent, according to the filing.
The limited partnership will pay federal tax like a corporation, according to the filing. The assets placed into the partnership will have enough tax credits that no meaningful federal tax will be paid for 15 years, the filing said.
Bank of America Corp., Goldman Sachs Group Inc and Morgan Stanley will serve as joint book-running managers for the offering.
NextEra rose 1.7 percent to $96.33 at the close in New York.