Equity Method Investments

9 Months Ended

Sep. 30, 2020

Equity Method Investments and Joint Ventures [Abstract]

Equity Method Investments

Equity Method Investments

Renewables holds a 50% voting interest in Vineyard Wind, a joint venture with Copenhagen Infrastructure Partners (CIP). Vineyard Wind acquired an easement from the U.S. Bureau of Ocean Energy Management containing rights to develop offshore wind generation in a 260 square-mile area located southeast of Martha’s Vineyard. The area subject to easement has the capacity for siting up to approximately 3,000 MW. In May 2018, Vineyard Wind was selected by the Massachusetts Electric Distribution Companies (EDCs) to construct and operate Vineyard Wind’s proposed 800 MW wind farm and electricity transmission project pursuant to the Massachusetts Green Communities Act Section 83C RFP for offshore wind energy projects.

In 2019, DEEP selected Vineyard Wind to provide 804 MW of offshore wind through the development of its Park City Wind Project. Pursuant to a joint bidding agreement between Renewables and CIP, CIP held a right to sell all or a portion of its 50% ownership interest to Renewables, subject to certain conditions, however this right expired on September 30, 2020. In October 2020, Vineyard Wind submitted an offshore wind solicitation to NYSERDA to provide 1,200 to 1,300 MW of offshore wind through the development of its Liberty Wind Project. In October 2020, Renewables and CIP entered into an agreement pursuant to which, subject to the satisfaction of certain conditions, CIP may exercise an option to effectuate a series of transactions that include the sale of its ownership interest in the Liberty Wind and Park City Wind Projects to Renewables and the purchase of Renewables’ residual ownership interest in certain lease areas that have not been awarded an offtake agreement as of the date of the exercise of such option by CIP.

Under the provisions of the LLC agreement, Renewables has contributed $157 million to Vineyard Wind. Contributions of $110 million have also been made to enter into a second offshore easement contract and for development costs for the area, which includes the site of the proposed Liberty Wind Project. We expect to provide additional capital contributions.

Vineyard Wind cannot finance its activities without additional support from its owners or third parties so Vineyard Wind is considered a VIE. We are not the primary beneficiary since we do not have a controlling interest in Vineyard Wind, and therefore we do not consolidate Vineyard Wind. Renewables' investment in Vineyard Wind was $261 million and $227 million as of September 30, 2020 and December 31, 2019, respectively.

Networks holds an approximate 20% ownership interest in New York TransCo, LLC (New York TransCo). Through New York TransCo, Networks has formed a partnership with affiliates of Central Hudson Gas and Electric Corporation, Consolidated Edison, Inc., National Grid, plc and Orange and Rockland Utilities, Inc. to develop a portfolio of interconnected transmission lines and substations to fulfill the objectives of the New York energy highway initiative. In 2019, New York Transco was selected as the developer for Segment B of the AC Transmission Public Policy Project by the NYISO. The total project cost is $600 million, plus interconnection costs. Networks’ contribution as 20% co-owner is $120 million. As of both September 30, 2020 and December 31, 2019, there was no amount receivable from New York TransCo.