Hudson Transmission Partners starts building 660 MW transmission project
Completion of the Neptune project is scheduled for the summer of 2013
Fairfield, Conn., May 23, 2011 — Hudson Transmission Partners, developer of the Hudson Transmission project, an underground and underwater cable between New Jersey and Manhattan, has closed financing totaling more than $850 million in debt and equity for construction of the project.
In conjunction with the closing, HTP has issued Notice to Proceed to its principal contractors, Siemens Power Transmission and Distribution, Inc. and Prysmian Cables and Systems USA, LLC. Completion of the Neptune project is scheduled for the summer of 2013.
Equity financing for the Hudson Project is being provided by private equity funds managed by Energy Investors Funds and Starwood Energy Group Global, LLC. Debt financing is being provided by a consortium of institutional investors through a private placement arranged by SG Americas Securities, LLC and RBS Securities, Inc.
The Hudson transmission cable will provide a source of electric power for the New York Power Authority to serve NYPA's governmental customers in New York City using high voltage direct current technology.
An electrical converter station will be constructed in Ridgefield, New Jersey, where alternating current power from the PJM grid will be converted to DC power, and then back to AC. The cable will then be buried along existing rights-of-way to Edgewater, New Jersey, where it will enter the Hudson River.
The cable will be buried beneath the river bottom for about three miles before making landfall near Pier 92 in Manhattan, and then be routed beneath New York City streets for a short distance and interconnect at the ConEd West 49th Street substation.
In late 2006, NYPA selected HTP to provide access to the PJM electricity system and to its diverse source of supply to meet energy demand for governmental customers. The cable will be capable of delivering up to 660 MW of new electric power supply, of which 495 MW of transmission capacity will be used by NYPA under a long-term agreement with HTP.
The remaining 165 MW of transmission capacity will be made available to other customers on a merchant basis.