NextEra Energy Transmission, a subsidiary of NextEra Energy has signed an agreement with SteelRiver Infrastructure Fund North America and its partners to acquire Trans Bay Cable (TBC) for nearly $1bn.
NextEra Energy stated that the transaction also includes the assumption of debt.
TBC is a 85.2km high-voltage direct current underwater transmission cable system with utility rates set by the Federal Energy Regulatory Commission (FERC) and revenues paid by the California Independent System Operator.
The cable system, which extends from Pittsburg, California, to San Francisco, California, delivers nearly 40% of the electrical power used on a daily basis in San Francisco and its surrounding areas.
TBC was developed in response to a 1998 blackout in the Bay Area, which showed the need for greater resiliency of the electric grid in that region.
NextEra Energy chairman and CEO Jim Robo said: “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.
“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.”
The transaction needs approval from the California Public Utilities Commission and the FERC, as well as expiration or termination of the waiting period under the Hart-Scott-Rodino Act. Depending on timely approvals, the transaction is expected to close next year.
In July, the company’s subsidiary Florida Power & Light (FPL) began construction of four solar plans each with 74.5MW of power generating capacity, totaling nearly 300MW.
These include the FPL Interstate Solar Energy Center to be located in St. Lucie County, FPL Miami-Dade Solar Energy Center in Miami-Dade County, FPL Pioneer Trail Solar Energy Center in Volusia County and FPL Sunshine Gateway Solar Energy Center in Columbia County. These four solar plants are expected to be operational in early next year.
Presently, FPL operates 14 solar power plants and more than 200 smaller solar installations with a total capacity of more than 935MW.