Northwestern Mutual acquires stake in Neptune Regional Transmission System

Special to The Freeman

June 16, 2014

MILWAUKEE NM Neptune LLC, an indirect wholly-owned subsidiary of Northwestern Mutual, has acquired Starwood Energy's 25 percent Class C stake in the Neptune Regional Transmission System.

The 65-mile high-voltage, direct-current underwater transmission cable connects Sayreville, N.J., to Long Island, N.Y. The system has been operational since 2007, with its 660 megawatts of capacity fully contracted to the Long Island Power Authority under a 20-year agreement, according to a statement.

"Neptune represents a significant addition to our infrastructure equity platform that we formally launched in 2013 within Northwestern Mutual Capital. The combination of current yield from an asset with strategic importance to the power markets of the Northeastern United States is very attractive," said Ron Joelson, executive vice president and chief investment officer for Northwestern Mutual. "Our investment objective is to generate superior returns while maintaining a well-balanced and diversified investment portfolio to preserve the company's exceptional financial strength."