It appears the city’s sale of its transmission assets has hit a snag.
The city of Rochelle reached a purchase agreement with NextEra Energy Transmission MidAtlantic, LLC, an indirect subsidiary of NextEra Energy, Inc. for the sale of 20 miles of 138 kV transmission lines and associated substation facilities at Caron Road.
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ROCHELLE — It appears the city’s sale of its transmission assets has hit a snag.
The city of Rochelle reached a purchase agreement with NextEra Energy Transmission MidAtlantic, LLC, an indirect subsidiary of NextEra Energy, Inc. for the sale of 20 miles of 138 kV transmission lines and associated substation facilities at Caron Road.
The city stands to receive a payment of just over $13.1 million at closing.
Reportedly, “Commonwealth Edison, the utility subsidiary of Chicago-based Exelon, has intervened …,” according to a recent Crain’s Chicago Business article. “In its ICC filings, ComEd argues that it should have the right of first refusal under state precedents for the sale of any municipally owned power lines.”
The article further states ComEd attributes a “first in the field” doctrine, essentially claiming it to be the first electrical provider in the area; therefore, it should have had first option prior to the sale to NextEra.
Exelon had been one of several respondents after Rochelle Municipal Utilities issued a request for proposal over a year and half ago.
“They reopened the records,” confirmed City Manager Jeff Fiegenschuh. “At this point we don’t know how long it will take. We are working through the process.”
City attorney Dominick Lanzito added the administrative law judge assigned in the matter had given the sale approval and it was sent to the Illinois Commerce Commission for a vote.
“[The commission] reopened the record before making a formal and final decision,” Lanzito said. “The briefing will take place in June and a decision will be made the end of June or early July.”