NextEra enters into agreement to acquire 400 MW subsea transmission project from SteelRiver

NextEra Energy Transmission, LLC, a subsidiary of NextEra Energy, Inc. announced it has entered into definitive agreements with SteelRiver Infrastructure Fund North America and its partners to acquire Trans Bay Cable, LLC (TBC) for approximately US$1 billion, including the assumption of debt.

TBC is a 53-mile, 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 extends from Pittsburg, California, to San Francisco, California, and provides approximately 40 percent of the electrical power used on a daily basis in San Francisco and its surrounding areas. TBC was developed and approved in response to a 1998 blackout in the Bay Area, which demonstrated a need for greater resiliency of the electric grid in that region.  

The transaction requires 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. Assuming timely regulatory approvals, the transaction is expected to close in 2019.

Wells Fargo Securities, LLC served as financial advisor, Pillsbury Winthrop Shaw Pittman LLP served as counsel, and Ellison Schneider Harris & Donlan LLP served as regulatory counsel to NextEra Energy Transmission. RBC Capital Markets served as financial advisor, and Winston & Strawn LLP served as legal advisor to the seller.