US public finance team advises the Southern California Public Power Authority on bond deal

Norton Rose Fulbright is serving as bond and disclosure counsel to the Southern California Public Power Authority (SCPPA) on a US$700m issuance of revenue bonds (in two tranches) to finance the initial costs of capital improvements to the Southern Transmission System, an electric transmission line running nearly 500 miles from the Intermountain Power Project generation station in Utah to a converter station in Southern California, serving several California municipal utilities including the Los Angeles Department of Water and Power (LADWP).

The financing will be the first of five contemplated bond issues to fund the entire US$2.13bn cost of planned improvements to the Southern Transmission System, known as the STS Renewal Project. The improvements will extend the life of the transmission line and allow it to accommodate the new Intermountain Power Project, which is being repowered from coal-fired generation to natural gas and ultimately clean hydrogen. LADWP will have the largest entitlement share of the STS Renewal Project.

SCPPA is a California joint powers authority that owns and operates electric generation, transmission and physical gas assets on behalf of its 12 members, consisting of 11 municipal electric utilities and one irrigation district, all located in Southern California.

Norton Rose Fulbright's team was led by Victor Hsu and included Stepan Haytayan, Mauricio Salazar, Susan Ohara (Los Angeles) and Steve Watson (Washington, DC).