Electric utility Atlantic Power (NYSE:AT) agreed today to sell its interests in the Path 15 transmission project to Duke-American Transmission, a joint venture between Duke Energy and American Transmission, for $56 million. Counting debt attached to the project, the total value of the transaction comes to $193 million.
Atlantic said in a statement that it will use the cash generated by this sale for "general corporate purposes," as well as for investment in unspecified "future accretive growth opportunities." The transfer of debt attached to the project should also reduce Atlantic's debt load by approximately 6.5%, to just under $2 billion.
Atlantic explained the decision to sell as being partly motivated by the fact that the project is "no longer a part of the strategic core to our business model," and partly a decision to remove "the most highly levered asset in our portfolio" from its balance sheet.
Assuming the Federal Energy Regulatory Commission approves the sale, it is scheduled to close in Q2 2013.