Binding bids were due 6 November in the auction of Trans Bay Cable, a 53-mile, 400MW submarine high-voltage direct current (HVDC) transmission line that delivers electricity to San Francisco, sister publication SparkSpread reported.
RBC Capital Markets is advising SteelRiver Infrastructure Partners on the sale process of the transmission line, which is code-named Project Candlestick.
A mix of financial and strategic investors are said to be vying for the asset, which is thought to have an enterprise value of approximately USD 1bn, according to an industry source.
Trans Bay Cable recovers its operating and capital costs, plus a return on capital costs, through rates included in the California Independent System Operator (CAISO).
The transmission line generated revenue of USD 133.1m last year.
The HVDC line connects Pittsburg in Contra Costa county, California, with San Francisco, and is capable of delivering more than 50% of the city’s electricity and can serve more than 40% of peak load.
The transmission line’s capital structure includes amortizing private placement notes due 2047, plus letter of credit and working capital facilities.
Details of the sale process were first reported by SparkSpread on 16 July.