WEC Energy Group to acquire 80% ownership of Samson I Solar Energy Center

Rhea-AI Summary

WEC Energy Group (NYSE: WEC) announced its acquisition of an 80% ownership stake in the 250 MW Samson I Solar Energy Center, located in northeast Texas, for approximately $250 million. Developed by Invenergy, the center began operations in May 2022 and generates renewable energy under a power purchase agreement with AT&T. This acquisition is part of the broader Samson solar portfolio, which aims for a total capacity of 1,300 MW. The investment aligns with WEC's strategy of expanding its renewable energy infrastructure and is eligible for tax credits under the Inflation Reduction Act. The deal is pending regulatory approvals.

Positive

• Investment of $250 million in renewable energy enhances WEC's infrastructure.
• The acquisition is part of a larger strategy to develop a 1,300 MW solar portfolio.
• Long-term power purchase agreement with AT&T provides stable revenue.

Negative

• None.

MILWAUKEE, Jan. 31, 2023 /PRNewswire/ -- WEC Energy Group (NYSE: WEC) today announced that the company has agreed to acquire an 80% ownership interest in the Samson I Solar Energy Center.

Samson I is a 250-megawatt project located about 140 miles northeast of Dallas, Texas. The project was developed and built by Invenergy — a leading global developer and operator of sustainable energy solutions. Commercial operation began in May 2022.

Samson I is generating renewable energy under a long-term power purchase agreement with AT&T. WEC Energy Group's investment is expected to total approximately $250 million for the 80% ownership interest.

Samson I is part of the five-phase Samson solar portfolio. The portfolio is being built on 18,000 acres in northeast Texas, and when completed, it's expected to total 1,300 MW. Samson is the largest solar project under construction in the United States.

This project is the second solar investment announced in WEC Energy Group's Infrastructure segment. The company also has existing or planned investments in eight major wind farms. Taken together, these solar and wind projects have nearly 2 gigawatts of capacity.

"The Samson Solar project is an exciting addition to our Infrastructure business and highlights our continued investment in affordable, reliable and clean energy. This project will help one of the world's largest telecommunications companies meet their clean energy needs for years to come," said Gale Klappa, executive chairman.

The Samson Solar investment is eligible for production tax credits as outlined in the Inflation Reduction Act passed by Congress. The transaction is subject to receiving all necessary regulatory approvals.

WEC Energy Group (NYSE: WEC), based in Milwaukee, is one of the nation's premier energy companies, serving 4.6 million customers in Wisconsin, Illinois, Michigan and Minnesota.

The company's principal utilities are We Energies, Wisconsin Public Service, Peoples Gas, North Shore Gas, Michigan Gas Utilities, Minnesota Energy Resources and Upper Michigan Energy Resources. Another major subsidiary, We Power, designs, builds and owns electric generating plants. In addition, WEC Infrastructure LLC owns a growing fleet of renewable generation facilities in the Midwest.

WEC Energy Group (wecenergygroup.com) is a Fortune 500 company and a component of the S&P 500. The company has approximately 37,000 stockholders of record, 7,000 employees and more than $41 billion of assets.

Forward-looking statements

Certain statements contained in this press release are "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. These statements are based upon management's current expectations and are subject to risks and uncertainties that could cause our actual results to differ materially from those contemplated in the statements. Readers are cautioned not to place undue reliance on these statements. Forward-looking statements include, among other things, statements concerning management's expectations and projections regarding investment amounts, construction plans and completion of the project. In some cases, forward-looking statements may be identified by reference to a future period or periods or by the use of forward-looking terminology such as "anticipates," "believes," "estimates," "expects," "forecasts," "guidance," "intends," "may," "objectives," "plans," "possible," "potential," "projects," "should," "targets," "will" or similar terms or variations of these terms.

Factors that could cause actual results to differ materially from those contemplated in any forward-looking statements include, but are not limited to: general economic conditions, including business and competitive conditions in the company's service territories; timing, resolution and impact of rate case and other regulatory decisions; the company's ability to continue to successfully integrate the operations of its subsidiaries; availability of the company's generating facilities and/or distribution systems; unanticipated changes in fuel and purchased power costs; key personnel changes; varying, adverse or unusually severe weather conditions; continued industry restructuring and consolidation; continued advances in, and adoption of, new technologies that produce power or reduce power consumption; energy and environmental conservation efforts; natural gas reduction or electrification initiatives, mandates, or similar efforts; the company's ability to successfully acquire and/or dispose of assets and projects and to execute on its capital plan; cyber-security threats and data security breaches; construction risks; equity and bond market fluctuations; changes in the company's and its subsidiaries' ability to access the capital markets; changes in tax legislation or our ability to use certain tax benefits and carryforwards federal, state and local legislative and regulatory changes, including changes to environmental standards the enforcement of these laws and regulations and changes in the interpretation of regulations by regulatory agencies; supply chain disruptions; inflation; political or geopolitical developments, including impacts on the global economy, supply chain and fuel prices, generally, from the ongoing conflict between Russia and Ukraine; current and future litigation and regulatory investigations, proceedings or inquiries; changes in accounting standards; the financial performance of American Transmission Company as well as projects in which the company's energy infrastructure business invests; the ability of the company to obtain additional generating capacity at competitive prices; goodwill and its possible impairment; and other factors described under the heading "Factors Affecting Results, Liquidity and Capital Resources" in Management's Discussion and Analysis of Financial Condition and Results of Operations and under the headings "Cautionary Statement Regarding Forward-Looking Information" and "Risk Factors" contained in the company's Form 10-K for the year ended December 31, 2021, and in subsequent reports filed with the Securities and Exchange Commission. Except as may be required by law, the company expressly disclaims any obligation to publicly update or revise any forward-looking information.

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SOURCE WEC Energy Group

FAQ

What is WEC Energy Group's recent acquisition regarding the Samson I Solar Energy Center?

WEC Energy Group announced its agreement to acquire an 80% ownership interest in the Samson I Solar Energy Center, a 250 MW solar project.

How much is WEC spending on the Samson I Solar Energy Center?

WEC's investment in the Samson I Solar Energy Center is approximately $250 million.

What is the capacity of the Samson I Solar Energy Center?

The Samson I Solar Energy Center has a capacity of 250 megawatts (MW).

When did the Samson I Solar Energy Center begin commercial operations?

The center began commercial operations in May 2022.

What is the strategic importance of the Samson I acquisition for WEC?

The acquisition supports WEC's growth in renewable energy and aligns with its commitment to clean energy solutions.

Is the Samson I Solar Energy Center eligible for any tax benefits?

Yes, the investment is eligible for production tax credits under the Inflation Reduction Act.

When is the acquisition of the Samson I Solar Energy Center expected to be finalized?

The transaction is subject to receiving all necessary regulatory approvals before it can be finalized.