QUICK NEWS, May 3: BUFFETT BUYING NEW ENERGY; SOLARCITY IN IPO; JAPAN BANKS BACK DUKE-SUMITOMO BIG KANSAS WIND DEAL

BUFFETT BUYING NEW ENERGY Buffett's MidAmerican sets sights on renewables, midstream M&A by summer

Abby Gruen, April 23, 2012 (SNL Financial)

“MidAmerican Energy Holdings Co., which has been on a renewable energy asset buying spree in the past six months, is on the prowl to buy more clean energy projects, as well as natural gas pipelines, by the summer of 2012.

“With expiring federal subsidies hurting wind and solar developers such as First Solar Inc., which sold its 550-MW Topaz Wind Farm project to MidAmerican in February, and troubles in the shale patch from low prices stressing natural gas pipeline owners such as Chesapeake Energy Corp., Warren Buffett's utility is ready with cash to make deals at the right price…[S]everal new deal announcements could be imminent…”

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”Backed by $2 billion in equity support from its parent, Berkshire Hathaway Inc., the generation and distribution powerhouse with sprawling networks of assets, mostly west of the Mississippi River, is looking to expand through mergers and acquisitions. Unique among its peers, the private power company doesn't pay dividends, so it has more flexibility to enter, and exit, the market opportunistically without worrying about pushback from shareholders. The company is also more willing to stretch its balance sheet in the near term for assets it plans to hold long term…

“…[Executives say] Buffett…is very committed to growing MidAmerican…While MidAmerican continues to look at buying utilities, it will remain extremely patient’ for now, because many are overvalued…Pepco Holdings Inc...[and] Oncor Electric Delivery Co. LLC. [have been mentioned as acquisitions]…Looking to expand its footprint in renewables, and offset Berkshire Hathaway's hefty tax bills, MidAmerican formed MidAmerican Renewables LLC in January. They are specifically hoping to repeat MidAmerican's First Solar Topaz deal, funded with $850 million in publicly rated bonds, executives [said]…MidAmerican is one of a dozen premier utilities…”

SOLARCITY IN IPO SolarCity Files SEC Papers For Initial Public Offering

30 April 2012 (Solar Industry)

”SolarCity Corp., a solar project integrator and provider of other clean energy services, plans to conduct a registered initial public offering (IPO) of its common stock.”

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”The offering is expected to commence after the Securities and Exchange Commission (SEC) completes the review process initiated by SolarCity's confidential submission on April 26 of its draft registration statement…The company has not disclosed any further information on the timing or other details…”

JAPAN BANKS BACK DUKE-SUMITOMO BIG KANSAS WIND DEAL Duke Energy, Sumitomo Secure $353M In Financing For Kansas Wind Farms

26 April 2012 (North American Windpower)

”Duke Energy Renewables and Sumitomo Corp. of America (the U.S. subsidiary of Japan-based Sumitomo Corp.)…have finalized their 50-50 ownership arrangement for two Kansas wind farms and secured approximately $353 million in financing for construction and operating costs.

“Duke Energy Renewables, a commercial business unit of Duke Energy…[will] sell a 50% stake in the 131 MW Cimarron II Windpower Project…[and in] the 168 MW Ironwood Windpower Project…to Sumitomo. The companies will complete construction of both wind farms later this year.”

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”The financing consists of a construction and term loan facility of approximately $330 million and a letter of credit facility totaling roughly $23 million. The lenders involved in the deal were Sumitomo Mitsui Banking Corp., Mizuho Corporate Bank Ltd. and Bank of Tokyo-Mitsubishi UFJ Ltd…

“…Kansas City Power & Light will purchase all of the electricity and associated renewable energy credits (RECs) produced by Cimarron II under the terms of a 20-year agreement. Westar Energy will buy all the power and RECs produced by the Ironwood wind farm through a 20-year agreement.”