NextEra Energy to Acquire Bay Area Electricity Line For $1 Billion
20 November 2018 - 1:17AM
Dow Jones News
By Micah Maidenberg
A NextEra Energy Inc. (NEE) subsidiary is acquiring an
underwater electricity transmission system that delivers power to
the San Francisco area.
NextEra Energy Transmission will buy Trans Bay Cable LLC for
about $1 billion from a fund controlled by investment firm
SteelRiver Infrastructure Partners.
NextEra said in a statement Monday that the $1 billion price tag
includes debt, but it didn't break out the specific amount. A
spokesman for the Juno Beach, Florida-based company declined to
comment on how much debt the NextEra was assuming in the deal. A
representative for SteelRiver didn't immediately respond to a
request for comment.
The Trans Bay Cable is a 53-mile cable system that stretches
under the waters between Pittsburg, California, located in the
eastern part of the Bay Area, and San Francisco itself. The cable
provides about 40% of the electrical power used in San Francisco
and surrounding areas on a daily basis.
The cable became operational in 2010, according to a SteelRiver
statement from that time. When the cable came online eight years
ago, SteelRiver said then it refinanced the project with a $562
million private placement of debt.
NextEra's deal for the cable system must be approved by the
California Public Utilities Commission and Federal Energy
Regulatory Commission. It is expected to close some time next
year.
The entity that owns the electrical cable system books sales via
the California Independent System Operator, a grid operator that
manages electricity flows on power lines that make up 80% of
California's grid and a small part of Nevada's.
Write to Micah Maidenberg at micah.maidenberg@wsj.com
(END) Dow Jones Newswires
November 19, 2018 09:02 ET (14:02 GMT)
Copyright (c) 2018 Dow Jones & Company, Inc.
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