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GridLiance Holdco closes transmission acquisition deal with EEI [free access]

March 4, 2020

GridLiance Holdco, through its GridLiance Heartland LLC subsidiary, has closed the acquisition of six transmission lines from Vistra Energy’s subsidiary, Electric Energy Inc. (EEI). The deal got permission from the Federal Energy Regulatory Commission (FERC) in February 2020.

 

In November 2019, GridLiance filed its revised application with FERC to acquire transmission assets from EEI, after its original proposal was rejected in September 2019. Under its latest conditional approval, FERC has set the annual transmission revenue requirement at about USD7.4 million and approved a separate open access transmission tariff (OATT) for the two lines that won’t be under Midcontinent Independent System Operator’s (MISO)  [regional transmission operator (RTO)]functional control immediately.

 

The transmission assets include six 161 kV transmission lines that range from approximately eight (12.88 km) miles to 10 miles (16.1 km) in length each, two 161 kV substations, and associated auxiliary equipment. This transmission network is being used by EEI to deliver power from its generating facilities, including the 1,000 MW Joppa generating station located in Joppa, Illinois. A total of four of these transmission lines connect with the network of Tennessee Valley Authority (TVA), while the other two lines connect with the network of Louisville Gas and Electric Company and Kentucky Utilities Company.

 

Vistra owns an 80 per cent interest in EEI, with Kentucky Utilities controlling the remaining 20 per cent. The assets are currently outside MISO footprint and GridLiance has announced the transfer of all assets under MISO control by 2022. While four of the six lines will be turned over immediately to MISO, the remaining two need to wait for existing power supply agreements to run their course.

 

The six lines were originally constructed to power the US Department of Energy’s (DoE) now-defunct Paducah Gaseous Diffusion Plant uranium facility. EEI reconfigured its transmission system to disconnect from the Paducah plant in 2017. The lines currently don’t serve any load.

 

MISO’s Board of Directors approved GridLiance Heartland’s application to join the RTO as a transmission-owning member in September 2018, subject to the outcome of the proposed transaction.