TPS Dell, a subsidiary of Teco Energy Inc, has completed the sale of its Dell Power Station to Associated Electric Cooperative Inc, a Missouri electric cooperative, for $75 million.
The Dell Power Station is a partially constructed 599-megawatt, natural gas-fired, combined-cycle electric generating facility located in Dell, Arkansas. According to Teco, the final proceeds from the sale, net of retained liabilities, are expected to be around $65 to $70 million.
Commenting on the impact of the sale, Teco Energy chairman and CEO Sherrill Hudson said, Teco Energy’s involvement in the merchant power market is virtually ended. The cash from this sale will help us meet our objectives of retiring the 2007 debt maturities and having additional cash for investing in our five core businesses.
As an integrated energy-related holding company Teco Energy’s core businesses are: retail electricity and gas in Tampa, waterborne transportation, coal and synthetic fuel production and electric generation and distribution in Guatemala.