GridLiance Closes Transaction to Acquire Majority Stake in City of Winfield, Kansas Transmission Assets
DALLAS, Sept. 3, 2020 /PRNewswire/ -- GridLiance, an independent electric transmission utility holding company, announced today that it recently closed on the acquisition of a majority ownership interest on the previously-announced transaction to co-own the City of Winfield's transmission facilities.
Under the terms of the transaction, GridLiance subsidiary GridLiance High Plains acquired a 65% ownership stake in the city's 69 kV transmission system and related-substation equipment. Winfield will retain a 35% ownership stake in the facilities and will continue to maintain and service them. Winfield will also retain ownership of its electric distribution assets and continue to provide retail electric service. The city also will receive a franchise fee and economic development and community support funds from GridLiance.
"The successful closing of this transaction is an important step in bringing improved transmission reliability to Winfield customers and the region. It is another example of our long-term commitment to invest in the electric grid and ensure the fair treatment of all transmission consumers," said GridLiance President and CEO Calvin Crowder. "In addition to funding transmission improvements, we are excited to invest in the local community and will be providing financial support to Winfield's community fund."
In anticipation of closing the transaction, GridLiance and Winfield have already begun work moving transmission lines that were damaged due to years of flooding on the Walnut River. The relocation, which is expected to be completed by the end of the year, will improve reliability and enhance the quality of life for the local community and throughout the region.
"The City of Winfield has provided reliable electric service to our community for over 100 years and joining forces with GridLiance will ensure we will continue to do so for the long term. We also will continue to provide operations and maintenance services and protect our local utility jobs," said Winfield Mayor Phil Jarvis. "We are already seeing the benefits of our collaboration with GridLiance as work progresses on several important transmission improvement projects in Winfield."
The Winfield transaction marks GridLiance's first co-ownership of transmission assets with a municipal utility under a development agreement with Kansas Power Pool (KPP), a municipal energy agency that provides energy and transmission services to Winfield and 30 other municipalities in Kansas.
"When we initially partnered with GridLiance, our goal was to address our member communities' transmission issues, while ensuring local control and protecting local jobs. We are pleased to see this is exactly what is happening with the Winfield transmission improvements," said Mark Chesney, CEO and general manager of KPP. "We look forward to working with GridLiance to identify additional opportunities to help our members meet their future energy needs."
The acquisition expands GridLiance's footprint into Kansas and marks the company's second completed acquisition this year.
About GridLiance
GridLiance is an independent electric transmission utility holding company. GridLiance collaborates with rural electric cooperatives, municipal utilities, joint action agencies and others to plan for the future of the grid, invest in necessary electric infrastructure and implement strategies to improve system reliability and resiliency and reduce overall costs to customers. Based in Dallas, GridLiance operates more than 700 miles of transmission lines and related substation facilities in Illinois, Kansas, Kentucky, Missouri, Nevada and Oklahoma. GridLiance is a portfolio company of Blackstone Energy Partners, an affiliate of Blackstone (NYSE: BX), a leading energy infrastructure investor. For more information about GridLiance, visit gridliance.com.
SOURCE GridLiance
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