NextEra Energy Transmission wraps up $1bn acquisition of Trans Bay Cable

Energy acquisition news : NextEra Energy Transmission has wrapped up its previously announced $1 billion worth acquisition of California-based transmission utility Trans Bay Cable (TBC), from affiliates of Steelriver Infrastructure Fund North America, for an undisclosed price.

Trans Bay Cable owns a 53-mile high-voltage direct current underwater transmission cable system in California, which was laid under the San Francisco Bay and through the Carquinez Strait, to interconnect Pittsburg and San Francisco. The underwater transmission cable system delivers 400MW of electricity, which is more than 40% of the power consumed in San Francisco.

The US Federal Energy Regulatory Commission (FERC) sets the utility rates of Trans Bay Cable, while revenues are paid by the California Independent System Operator.

Trans Bay Cable was developed and approved following a blackout in the Bay Area in 1998, which proved that the region needed greater resiliency of the electric grid.

The Trans Bay Cable was laid under San Francisco Bay. Photo courtesy of Doc Searls from Santa Barbara, USA/Wikipedia.org.

Its acquisition, which was announced in November 2018, was completed after securing approvals from the California Public Utilities Commission and the FERC apart from meeting other conditions.

Commenting on NextEra Energy Transmission acquisition of Trans Bay Cable, Jim Robo – chairman and CEO of NextEra Energy said: “We are pleased to complete this transaction and welcome the TBC employees to the NextEra Energy family.

“This transaction 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.”

For more energy acquisition news like NextEra Energy Transmission acquisition of Trans Bay Cable, keep following Business News Today.