Hunton Andrews Kurth Advises on New York State Electric & Gas Corporation’s $525 Million Green Bonds Offering

Hunton Andrews Kurth LLP advised the initial purchasers in connection with New York State Electric & Gas Corporation’s (“NYSEG”) issuance of $525 million in aggregate principal amount of its 5.30% Notes due August 15, 2034 in a private placement under Rule 144A and Regulation S of the Securities Act of 1933, as amended, to eligible purchasers.

An amount equal to the net proceeds of the offerings will be used by NYSEG to finance and/or refinance, in whole or in part, one or more projects meeting certain eligibility criteria in the United States, including (i) investment in transmission and distribution networks projects having the purpose of connecting renewable generation sources, (ii) investment in the transmission and distribution grid that enable distributed renewable generation and support the achievement of renewable portfolio/clean energy targets (investment unrelated to increasing use of renewable generation sources will not be included), (iii) investment in transmission and distribution projects that aim at improving system efficiency and/or energy use management, (iv) investment focused on resiliency and hardening in transmission and distribution networks focused on mitigating the impact of extreme weather events, e.g., severe windstorms, icing, flooding (investment in normal aged asset replacement) and (v) investment related to fleet vehicle electrification, charging station infrastructures and other supporting infrastructure.

NYSEG is a public utility company principally engaged in transmitting and distributing electricity and transporting, storing and distributing natural gas. NYSEG also generates electricity, primarily from its several hydroelectric stations. NYSEG serves approximately 920,000 electricity and 272,000 natural gas customers in its service territory of approximately 20,000 square miles, which is located in the central, eastern and western parts of the state of New York and has a population of approximately 2.5 million. The larger cities in which NYSEG serves electricity and natural gas customers are Binghamton, Elmira, Auburn, Geneva, Ithaca and Lockport.

The Hunton Andrews Kurth team included Peter K. O’Brien, Brendan P. Harney, Reuben H. Pearlman and Gabrielle Kraushaar. Robert McNamara, William Freeman, Caitlin Scipioni and Katherine Gallagher provided tax advice.