December 15, 2011
External Affairs Branch
Robert Udall Glazier, Deputy Executive Officer
Brad Pacheco, Chief, Office of Public Affairs
Contact: Wayne Davis, Information Officer
CalPERS Purchases Interest in Power Transmission Line
SACRAMENTO, CA – The California Public Employees' Retirement System (CalPERS) announced today that it has agreed to acquire a stake in a 65-mile submarine electric power transmission line that runs from Sayreville, New Jersey, to Hicksville, Long Island, New York.
The agreement to purchase an interest in the Neptune Regional Transmission System from Arclight Capital marks CalPERS second direct infrastructure investment, following the 2010 purchase of a 12.7 percent equity stake in London's Gatwick Airport.
"This agreement is a good fit for our growing infrastructure program," said Joseph Dear, CalPERS Chief Investment Officer. "It's an income-generating investment with stable revenues located in the United States, very much in line with the type of investment we said we would be looking to make when we described our vision for infrastructure in September."
Over the next three years, CalPERS plans to invest up to $5 billion in infrastructure projects, including up to $4 billion in the United States and up to $800 million in California. CalPERS plans call for investments in both public and private infrastructure, including, but not limited to, transportation, energy, natural resources, utilities, water, communications and other social support services.
The deal for the transmission line is expected to close in the first quarter of 2012. Terms of the agreement were not disclosed.
CalPERS is the nation's largest public pension fund with approximately $225 billion in assets, providing retirement benefits to more than 1.6 million State, public school, and local public agency employees, retirees, and their families, and health benefits to more than 1.3 million members. The average CalPERS pension is $2,220 per month. For more information about CalPERS, visit www.calpers.ca.gov.