On October 20, 2020, in Docket EC21-10, NextEra Energy Transmission, LLC (NEET), GridLiance West LLC, GridLiance High Plains LLC, and GridLiance Heartland LLC (collectively, GridLiance) filed an application requesting authorization for a transaction whereby NEET will acquire the upstream ownership interests in GridLiance. FERC reviewed the proposed transaction and, on March 18, 2021, conditionally authorized it as consistent with the public interest. The condition FERC placed on its approval is because the Applicants representations were insufficient to show that the Proposed Transaction will not result in the cross-subsidization of a non-utility associate company by a utility company, or in a pledge or encumbrance of utility assets for the benefits of an associate company. Therefore FERC required that the Applicants must show that they meet the criteria for application of the safe harbor (which they claimed in their filing) by filing a new Exhibit M (verification regarding cross-subsidization of non-utility associate company or pledge of encumbrance) no later than 60 days from the issuance of this order.
The GridLiance Transco’s partner with municipal electric utilities, electric cooperatives, and joint action agencies to solve transmission issues, optimize its partners’ systems, and help manage costs of these systems to the benefit of its partners and the broader transmission grid. Blackstone Power & Natural Resources Holdco, L.P. (Blackstone) has partnership interests in the Gridliance Transcos. Following the Proposed Transaction, Blackstone will no longer own any direct or indirect interests in GridLiance Transcos, and NEET will become the indirect owner of GridLiance Transcos.
In its Order, FERC found that:
Dr. Paul Dumais
CEO of Dumais Consulting with expertise in FERC regulatory matters, including transmission formula rates, reactive power and more.