Wednesday, May 1, 2013

Duke Joint Venture Takes Stake in Calif. Power Transmission Line

Bridging the gap between north and south in central California, a joint venture between Duke Energy (NYSE: DUK  ) and American Transmission has completed the acquisition of the 72% of capacity owned by Atlantic Power (NYSE: AT  ) in Path 15, an 84-mile, 500-kilovolt transmission line that links the state's two power grids.

Pacific Gas & Electric owns an 18% stake in the line. Western Area Power Administration owns the remaining 10% and will continue to be responsible for operating and maintaining the line.

Duke-American Transmission was formed in 2011 to develop strategic transmission projects across the U.S. and Canada. The 9-year old transmission line known as Path 15 is essential to maintaining electric system reliability and market efficiency across California. 

When the acquisition was announced in March, Duke-America President Phil Grigsby said Path 15 was "a ground-breaking project that launched the competitive transmission industry by using private capital to fund much-needed new transmission infrastructure, and we're excited to be a part of that legacy."

Duke-American Transmission paid Atlantic Power approximately $56 million for its stake. The deal also includes the buyers assuming $137 million in debt.

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