Dive Brief:
- Integrys Energy Group has agreed to sell its Upper Peninsula Power Co. (UPPCO) utility subsidiary for $299 million to Balfour Beatty Infrastructure Partners (BBIP), a British investment fund.
- UPPCO provides power to about 52,000 residential, commercial and industrial customers in Michigan's Upper Peninsula. Integrys bought the utility in 1998.
- While keeping UPPCO's ownership stake in American Transmission Co., Integrys will provide certain services to BBIP to ease the transition for the new utility owner.
Dive Insight:
BBIP plans to own UPPCO for the long run, reaping the steady returns available to utility owners. For Integrys, the utility holding company sheds a small part of its utility subsidiaries, which will bolster its remaining assets.
"The proceeds will substantially reduce the need to issue new equity to fund generation and infrastructure requirements at our other regulated utilities,” Integrys Chairman and CEO Charles Schrock said.
Integrys recently announced it is planning to invest $40-50 million annually in a residential and commercial solar fund.
