Trans-Elect Development Company, LLC.
North America's Electric Transmission Company
 
 
 

Former Assets:
   
 

METC

  • Trans-Elect became the first company to ever buy a transmission asset in the United States from an investor-owned utility.

  • In May of 2002, Trans-Elect purchased the transmission system of Consumers Energy in Michigan for $288 million.

  • The new company is known as the Michigan Electric Transmission Company (METC).

  • It has 5,400 miles of transmission lines and recently sold for $555 million.
  1. Purchase price - $290 million

  2. Assets - 5,400 miles of transmission lines in Michigan
  3. Investors - Trans-Elect as General Partner with equity investment from GE Capital. Debt raised by Deutsche Bank and CIBC
  4. Seller's Rationale - Strengthen balance sheet and use sale to focus strategy

  5. Closed May 1, 2002
 
   
 
 

AltaLink

  • Trans-Elect became the first independent electric transmission company in the United States to ever acquire transmission assets from an investor-owned utility.

  • Trans-Elect helped to organize a Canadian consortium to purchase the transmission assets of TransAlta in Alberta, Canada in April of 2002 and served as the co- general partner.

  • The company, now known as AltaLink, has over 7,200 miles of transmission lines.
  1. Purchase Price - $570 million (C$860 million)

  2. Assets - 7,200 miles of transmission lines in Alberta, Canada

  3. Investors – Trans-Elect and SNC-Lavalin as 50/50 General Partners with equity investment from Ontario Teacher's Pension Plan Board

  4. Investors – Trans-Elect and SNC-Lavalin as 50/50 General Partners with equity investment from Ontario Teacher's Pension Plan Board
    Seller's Rationale - Become a pure generating company (previously divested distribution assets)

  5. Closed April 29, 2002
 
 
   
 

Path 15

  • In late 2004, Governor Schwarzenegger helped Trans-Elect energize its first newly-developed transmission line, Path 15, in California.

  • This line was developed in a first of its kind partnership with Pacific Gas and Electric (PG&E) and the U.S. Department of Energy to help overcome the transmission deficiency in California that contributed to the rolling blackouts in California in 2000 and 2001.

  • The Path 15 line was originally budgeted for $325 million and was brought into service ahead of schedule and for $250 million.

  • Trans-Elect received the “Project of the Year” award by Project Finance Magazine as this financing was the first ever greenfield transmission line to be project financed in U.S. history.

  • Trans-Elect emerged from the project with a reputation of being an industry leader in overcoming complicated regulatory, financing and political challenges.

  • The experience and reputation has served Trans-Elect well in forming new partnerships with investor-owned utilities and Governmental entities including another partnership with the U.S. Department of Energy, and has achieved another first by partnering with a state infrastructure authority.
  1. Public-private partnership with Western (DOE) & PG&E

  2. FERC regulated tariff with CAISO as sole customer/cost socialized

  3. Construction started in September 2003--C ommercial on-line December 2004

  4. Under budget and ahead of schedule--$255 M

  5. Projected pay-back for consumers in 4 years under normal conditions

  6. Serve 1.5 million homes