Federal Energy Regulatory Commission Approves Acquisition
Dallas, TX and Nixa, MO (April 4, 2018) – GridLiance Holdco, L.P., (GridLiance) an independent transmission company, has completed its acquisition of the City of Nixa’s electric transmission assets, including a 10 mile, 69 kV transmission line between the City of Springfield and the Southwestern Power Administration, as well as four substations and related infrastructure.
“This transaction represents a major milestone in leveling the playing field for municipalities that seek to enjoy the same benefits as large utilities,” said Calvin Crowder, president and CEO, GridLiance. “We are excited about the reliability and economic improvements the transaction will bring to Southwest Missouri and we value immensely our ongoing partnership with the City of Nixa.”
As the final major approval for this transaction, in an order issued on March 15, 2018, the Federal Energy Regulatory Commission (FERC) approved the application of GridLiance subsidiary, South Central MCN LLC, to acquire the Nixa Assets “as consistent with the public interest.” The Missouri Public Service Commission granted South Central a certificate to operate as a public utility in Missouri in 2016.
With these approvals, GridLiance subsidiary, South Central MCN LLC, has assumed full operational responsibility of Nixa’s transmission assets effective April 1, 2018.
“The City of Nixa initially invested in a second transmission line to ensure reliability,” said Doug Colvin, Director of Nixa Utilities and Public Works. “However the ever changing regulatory and tariff process makes it difficult for a small distribution utility like Nixa to operate transmission today. That is why we are glad to partner with GridLiance, who will handle operations and compliance issues while ensuring the residents of Nixa continue to enjoy reliable transmission service.” For electric customers inside Nixa city limits, it is important to know that Nixa Utilities will continue to own the distribution lines which go to homes and businesses in Nixa, and customers will continue to pay their electric bills to Nixa Utilities. This transaction means Nixa Utilities no longer have to maintain the transmission lines which connect the City to the regional grid and power stations where electricity is generated. Over time, the transaction will save the city money on transmission costs.
GridLiance is an electric transmission utility holding company. Based in Dallas, TX, GridLiance is a portfolio company of Blackstone Energy Partners, an affiliate of Blackstone (NYSE:BX), a leading energy infrastructure investor. GridLiance’s differentiated business model is to work with electric cooperatives, municipal utilities, irrigation districts, and joint action agencies to plan for the future, invest in electric infrastructure and implement strategies that meet its utility partners’ ownership, capital investment, and operational goals. GridLiance currently operates hundreds of miles of transmission lines and related substation facilities in Nevada, Missouri, and Oklahoma. The company has long-term partnerships with utility partners operating in Missouri, Oklahoma, Nevada, Texas, and Kansas, and is negotiating new arrangements with utilities in several other states. For more information about GridLiance, visit www.GridLiance.com.
About City of Nixa and Nixa Utilities
A progressive and fast-growing community, Nixa Missouri is home to approximately 21,000, making it the largest city in Christian County and the second largest in the Springfield metro area. The City of Nixa operates Nixa Utilities, a publicly owned electric, water, and sewer utility. Additionally, the Nixa Public Works department performs street maintenance, construction, recycling and provides equipment and vehicle maintenance for all City departments, storage of utility equipment and utility mapping for the municipality. In 2017, Nixa became home to Missouri’s largest solar farm, generating up to 7.92 megawatts of clean, renewable energy exclusively for Nixa Utilities customers.