FirstEnergy Corp. (FE) said that it agreed to sell an additional 30% ownership interest in its FirstEnergy Transmission LLC business to Brookfield Super-Core Infrastructure Partners.
FirstEnergy noted that proceeds from the $3.5 billion all-cash deal will further strengthen its financial position.
The transaction is expected to close by early 2024.
FirstEnergy Transmission LLC is the holding company for three of FirstEnergy's FERC-regulated transmission utility subsidiaries: American Transmission Systems, Incorporated (ATSI); Mid-Atlantic Interstate Transmission, LLC (MAIT); and Trans-Allegheny Interstate Line Company (TrAILCo) - which comprise one of the largest transmission systems in PJM. FirstEnergy also owns transmission assets in New Jersey, Pennsylvania, West Virginia and Maryland that are not part of FirstEnergy Transmission.
In May 2022, FirstEnergy completed the sale of a 19.9% non-controlling interest in FET to Brookfield. Upon closing of the transaction announced today, FirstEnergy will remain the majority owner of FirstEnergy Transmission, and FirstEnergy's workforce will continue to operate the business. FirstEnergy will retain nearly 70% of its overall regulated transmission portfolio.
Additionally, FirstEnergy said Thursday that it has increased its 2021-2025 long-term growth plan to about $18 billion, an increase of approximately $1 billion from the $17 billion target established in 2021.
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