NextEra Energy Transmission to purchase California underwater cable system
NextEra Energy Transmission, LLC solidified plans last month to acquire Trans Bay Cable, LLC of California, putting down $1 billion to buy up its 53-mile high-voltage direct current underwater transmission cable system.
That system runs from Pittsburg, Calif., to San Francisco, Calif., and provides around 40 percent of the power in the area. Its rates are set by the Federal Energy Regulatory Commission (FERC) and revenues paid by the California Independent System Operator, meaning the transaction will require approval from both FERC and the California Public Utilities Commission, and be subject to a waiting period. With all those factors in consideration, the deal could go forward as early as next year.
“The Trans Bay Cable provides meaningful benefits to residents of the Bay Area by providing access to safe, reliable and cost-effective electric transmission service,” Jim Robo, chairman and chief executive officer of NextEra Energy, said. “This acquisition furthers our goal of creating America’s leading competitive transmission company and is consistent with our strategy of adding high-quality regulated assets to our portfolio.”
NextEra Energy Transmission — a subsidiary of NextEra Energy, Inc. — has assets throughout the country, and this latest acquisition only adds to its portfolio. Once sealed, the transaction will be immediately accretive to earnings upon closing. Wells Fargo Securities, LLC, Pillsbury Winthrop Shaw Pittman LLP, and Ellison Schneider Harris & Donlan LLP all assisted NextEra on its side of the deal.
