UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(D)
OF THE SECURITIES EXCHANGE ACT OF 1934
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| Item 1.01 | Entry into a Material Definitive Agreement. |
On October 24, 2024, NECEC Transmission LLC (“NECEC”), a subsidiary of Avangrid, Inc. (the “Corporation”), entered into amendments (the “Amendments” and each, an “Amendment”) to the following transmission service agreements (each, a “TSA” and collectively, the “TSAs”), dated as of June 13, 2018, which were entered into in connection with the 1,200 megawatt (“MW”) +/-320 kilovolt high voltage direct current transmission line to be constructed, owned, operated and maintained by NECEC extending from the U.S.-Canada border in Maine to a direct current to alternating current converter station located in the City of Lewiston, Maine, along with certain necessary transmission interconnection facilities and upgrades to the existing alternating current transmission system in Maine (the “New England Clean Energy Connect transmission line project” or the “NECEC Transmission Line”):
| 1.(a) | TSA with NSTAR Electric Company (d/b/a Eversource), pursuant to which NECEC will provide 579.335 MW of firm transmission service over the NECEC Transmission Line for a twenty-year term commencing on the commercial operation date of the NECEC Transmission Line (the “COD”), as amended (the “Eversource TSA”). |
| 1.(b) | TSA with Massachusetts Electric Company (d/b/a National Grid) and Nantucket Electric Company (d/b/a National Grid), pursuant to which NECEC will provide 498.348 MW of firm transmission service over the NECEC Transmission Line for a twenty-year term commencing on the COD, as amended (the “National Grid TSA”). |
| 1.(c) | TSA with Fitchburg Gas & Electric Light Company (d/b/a Unitil), pursuant to which NECEC will provide 12.317 MW of firm transmission service over the NECEC for a twenty-year term commencing on the COD, as amended (the “Unitil TSA”). |
| 2.(a) | TSA with H.Q. Energy Services (U.S.) Inc. (“HQUS”), an affiliate of Hydro-Québec, pursuant to which NECEC will provide 579.335 MW of firm transmission service over the NECEC Transmission Line for a twenty-year term commencing on the twentieth anniversary of the COD. |
| 2.(b) | TSA with HQUS, pursuant to which NECEC will provide 498.348 MW of firm transmission service over the NECEC Transmission Line for a twenty-year term commencing on the twentieth anniversary of the COD. |
| 2.(c) | TSA with HQUS, pursuant to which NECEC will provide 12.317 MW of firm transmission service over the NECEC Transmission Line for a twenty-year term commencing on the twentieth anniversary of the COD. |
| 3. | TSA with HQUS, pursuant to which CMP will provide 110 MW of firm transmission service over the NECEC Transmission Line for a forty-year term commencing on the COD. |
The Amendments are intended to mitigate the impacts of the change in law arising from the Maine citizens’ ballot initiative entitled “An Act to Ensure Legislative Approval of Certain Transmission Lines and Other Linear Projects on Public Land” and resulting suspension of construction of the NECEC Transmission Project. In particular, the Amendments, among other things, (i) increase the rate under the Eversource TSA, the National Grid TSA, and the Unitil TSA by $4.32 kw/month and (ii) provide NECEC and HQUS two additional six-month options to extend certain remaining Critical Milestones (as defined in the TSAs) by posting additional credit support. The effectiveness of the Amendments is subject to the final non-appealable approval of the Massachusetts Department of Public Utilities and the Federal Energy Regulatory Commission.
The foregoing description is only a summary of the material provisions of the Amendments, and the transactions contemplated thereby, and does not purport to be complete and is qualified in its entirety by reference to such agreements, copies of which will be filed by the Corporation as exhibits to its annual report on Form 10-K for the period ending December 31, 2024.
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SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
| AVANGRID, INC. | ||
| By: | /s/ R. Scott Mahoney | |
| Name: | R. Scott Mahoney | |
| Title: | Senior Vice President – General Counsel and Corporate Secretary | |
Dated: October 29, 2024
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