Bridging the gap between north and south in central California, a joint venture between Duke Energy (NYSE:DUK) and American Transmission has completed the acquisition of the 72% of capacity owned by Atlantic Power (NYSE:AT) in Path 15, an 84-mile, 500-kilovolt transmission line that links the state's two power grids.
Pacific Gas & Electric owns an 18% stake in the line. Western Area Power Administration owns the remaining 10% and will continue to be responsible for operating and maintaining the line.
Duke-American Transmission was formed in 2011 to develop strategic transmission projects across the U.S. and Canada. The 9-year old transmission line known as Path 15 is essential to maintaining electric system reliability and market efficiency across California.
When the acquisition was announced in March, Duke-America President Phil Grigsby said Path 15 was "a ground-breaking project that launched the competitive transmission industry by using private capital to fund much-needed new transmission infrastructure, and we're excited to be a part of that legacy."
Duke-American Transmission paid Atlantic Power approximately $56 million for its stake. The deal also includes the buyers assuming $137 million in debt.
Fool contributor Rich Duprey has no position in any stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.
More from The Motley Fool
3 Stocks to Add to Your Social Security Income
If supplementing Social Security is a main investing goal, then take a look at this trio of investment opportunities.
3 Value Stocks Perfect for Retirement
Why Duke Energy, eBay, and Cirrus Logic are ideal investments for your retirement account today.
2 Stocks to Supplement Your Social Security Income
Social Security is great, but for most people, more money would be better. Here are two high-yielders to supplement your Social Security checks.