TCEC to sell transmission assets to increase reliability and reduce costs
TCEC and GridLiance Holdco, through subsidiary South Central MCN LLC (“GridLiance”), today announced that they have entered into a definitive agreement under which GridLiance will acquire TCEC’s electric transmission assets, including approximately 410 miles of 69 and 115 kV transmission lines and the related substation infrastructure. TCEC will use the proceeds to reduce debt.
“Our members will see reduced costs and increased reliability as a result of this sale,” said TCEC Chief Executive Officer Jack Perkins. “GridLiance is the ideal long-term partner for TCEC and our members, and becoming a part of its network allows us to rely on GridLiance to move ahead with important transmission level reliability projects that we otherwise could not have completed on our own. Additionally, we will be able to reallocate funding and resources to upgrade our distribution system, put our transmission assets into the hands of proven, experienced operators and have the direct ability to offset the rising costs of transmission service.”
Upon close of the acquisition, GridLiance will assume full operational responsibility of TCEC’s transmission assets, including federal, state and regional compliance requirements. The transaction is subject to federal regulatory approval and is expected to be completed by year end.
“We are excited to join forces with TCEC and believe that our partnership will bring important benefits, including never before available opportunities for TCEC to invest in Southwest Power Pool, Inc. (“SPP”) transmission projects that will reduce congestion and provide more reliable transmission service,” said Ed Rahill, GridLiance’s President and CEO. “TCEC will also benefit from our experience and scale as we operate and maintain the transmission system, represent them in the SPP planning process and ensure compliance with mandated reliability and other regulatory requirements.”
Members with questions regarding this sale or any other aspect of their service with TCEC should contact TCEC member service at 580-652-2418 or 800-522-3315.
# # #
Headquartered in Hooker, Oklahoma, Tri-County Electric Cooperative (TCEC) is a not-for-profit distribution cooperative owned and controlled by its members. TCEC is committed to improving the quality of life for its members and communities by delivering safe, reliable and affordable electric service. The cooperative serves about 23,000 meters in the Oklahoma Panhandle, southwestern Kansas, the northern border of the Texas Panhandle and parts of Colorado and New Mexico. TCEC is a Touchstone Energy cooperative. For more information, visit www.tcec.coop.