FirstEnergy Bags $3.5b Equity Investment for Growth
FirstEnergy Corp. said it had reached a final agreement with Brookfield Super-Core Infrastructure Partners (Brookfield) to sell an additional 30% stake in its FirstEnergy Transmission, LLC (FET) business.
FirstEnergy will get $3.5 billion in cash when the deal is done. This will make its finances more stable and help it reach its goal of becoming a top utility company with steady growth while switching to clean energy.
FET is the parent company of American Transmission Systems, Incorporated (ATSI), Mid-Atlantic Interstate Transmission, LLC (MAIT), and Trans-Allegheny Interstate Line Company (TrAILCo), which are all regulated transmission subsidiaries of FirstEnergy. These subsidiaries make up a large transmission system within the PJM region. FirstEnergy also owns additional transmission assets in several states, but these assets are not part of the FET holding company.
"We are pleased to expand our partnership with Brookfield, one of the world's largest and most respected infrastructure investors," said John W. Somerhalder, FirstEnergy's board chair, interim president, and chief executive officer. "This agreement efficiently raises capital at an attractive valuation and speaks to the strength and potential of our regulated growth strategies. It positions FirstEnergy to drive value for shareholders as we further optimise our financial position and plan for additional smart grid and clean energy investments in our regulated transmission and distribution businesses."