TBC supplies nearly 40% electricity used by San Francisco and its surrounding areas on a daily basis. Credit: Mike Wilson on Unsplash.

NextEra Energy Transmission has agreed to purchase Trans Bay Cable (TBC) for approximately $1bn, including the assumption of debt.

The company has entered definitive agreements with SteelRiver Infrastructure Fund North America and partners for the acquisition.

Go deeper with GlobalData

Data Insights

The gold standard of business intelligence.

Find out more

Related Company Profiles

View all

TBC is a high-voltage direct current (HVDC) submarine cable system that runs 53 miles under the San Francisco Bay. It transfers existing energy from Pittsburg to San Francisco in California and supplies nearly 40% electricity used by San Francisco and its surrounding areas on a daily basis.

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.”

“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.”

Developed in response to a 1998 blackout in the Bay Area, the HVDC cable system was selected by the California Independent System Operator (CAISO) as the suitable energy transmission solution to provide reliable energy to San Francisco.

How well do you really know your competitors?

Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.

Company Profile – free sample

Thank you!

Your download email will arrive shortly

Not ready to buy yet? Download a free sample

We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form

By GlobalData
Visit our Privacy Policy for more information about our services, how we may use, process and share your personal data, including information of your rights in respect of your personal data and how you can unsubscribe from future marketing communications. Our services are intended for corporate subscribers and you warrant that the email address submitted is your corporate email address.

TBC’s utility rates are set by the federal energy regulatory commission (FERC) and revenues paid by the CAISO.

Completion of the deal is subject to approval of the California Public Utilities Commission, as well as the FERC and expiration or termination of the waiting period under the Hart-Scott-Rodino Act. The transaction is expected to complete next year.

For this transaction, Wells Fargo Securities served as financial advisor, while Pillsbury Winthrop Shaw Pittman served as counsel, and Ellison Schneider Harris & Donlan acted as the regulatory counsel to NextEra Energy Transmission.

RBC Capital Markets served as financial adviser, and Winston & Strawn served as legal adviser to the seller.