Private Equity Firm Profiting from Valley Link Land Seizure?
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Private Equity Firm Profiting from Valley Link Land Seizure?

  • Writer: paulBVL
    paulBVL
  • 4 days ago
  • 4 min read

In a post on Feb 27th, right after this whole fiasco landed in our laps, I noted that it’s hardly a coincidence the proposed Valley Link “bulk energy distribution hub” (a.k.a. the giant substation) called Yeat just happens to sit smack in the middle of a Federal Opportunity Zone in Culpeper county. Original post here: https://www.blockvalleylink.org/post/it-s-all-starting-to-make-sense-now


Quick refresher: any “infrastructure investment” in an Opportunity Zone gets a sweet 10-year federal tax holiday. What a deal.


What I didn’t know then is that a private investment shark already has a massive piece of the action. Meet Brookfield Infrastructure Partners—specifically its Brookfield Super-Core Infrastructure Partners fund (BSIP)—which holds an indirect but very real ~17% economic interest in Valley Link LLC. They get there through a nearly 50% stake in FirstEnergy Transmission, LLC (FET), which itself owns 34% of Valley Link.


In plain English: Brookfield funnels long-term capital to First Energy Transmission so it can help bankroll this lovely land-seizure project. That’s right in line with Brookfield's global playbook—snapping up regulated utility monopolies and printing money.


I’m pretty sure a sharp tax attorney could thread the needle so the entire transmission-line profit stream qualifies for that juicy Opportunity Zone break. After all, that’s what these firms do best: maximize returns.


Might this be another reason the Yeat substation was moved from Fauquier county down to the tax free zone in Culpeper county ? Perhaps another one of those vague "complications" Lane Carr mentioned. Having to pay federal taxes in Fauquier while none in Culpeper certainly would seem to qualify as a "complication" from a private equity viewpoint.


The Valley Link investment is going to be a profitable investment for Brookfield. Valley Link requested that the grid overlord, PJM, grant a guaranteed 10.9% return on equity (ROE), i.e. "profit", and an additional 0.5% since the project is part of PJM. This is higher than average for similar projects. The 10.9% hasn't been approved YET, but the 0.5% boost has. If approved, thats a sweet return, guaranteed by none other than us sheeple on our electric bills. Note that every 0.1% in profit costs us sheeple millions.


What if the project is cancelled? Don't worry, any investors are guaranteed to be made whole courtesy of the Federal Energy Regulatory Council (FERC), which granted this incentive to Valley Link on May 13, 2025: "recovery of 100% of prudently incurred costs in the event that all or part of the Project Portfolio must be abandoned for reasons outside the control of Valley Link".


Which brings us to you, the landowners whose property they plan to seize. Congratulations—Brookfield’s Super-Core fund is about to control a 17% slice of your land, courtesy of the Commonwealth of Virginia's eminent domain scheme. How thoughtful. Meet one of your new landlords.


Meanwhile, I can’t help wondering who the big investors in that fund are? They’re the ones quietly writing the checks… and getting quite the literal steal. According to the Brookfield fund performance report, they've raised $14.2 billion dollars from 323 investors.


Side Note: Brookfield Super-Core Infrastructure Partners is domiciled in Delaware, Canada, and Luxembourg. "Foreign mega corporations extracting resources from rural Virginia"...now where did I hear that from? Spoiler alert, listen to Chris Miller's speech again: https://www.blockvalleylink.org/post/a-stunning-example-of-why-we-fought-the-american-revolution-in-the-first-place


We did try to get a statement from Brookfield by calling their Director of Communications in London, a gentleman by the name of John Hamlin. A pleasant chap who suggested I send an email with my question, evidently he was out and about on some adventure. The email was sent promptly, the text of which is below, but alas, no response. Does anyone else find it ironic that I'm calling to London, England to inquire about their pending land seizure here in the Commonwealth of Virginia?


See 'receipts' below the letter.


Subject: Follow-Up on Our Conversation and Request for Brookfield’s Official Response


Dear John,


Thank you for speaking with me today.


I am writing on behalf of Block Valley Link regarding our ongoing research into the investment partners and capital providers for Valley Link, LLC, which is currently seeking regulatory approval for the proposed 115-mile, 765 kV “green field” transmission line traversing nine rural counties in historic central Virginia—from Joshua Falls in Campbell County to Culpeper County.


Our analysis indicates that the BSIP private equity fund will hold a 17% economic and controlling interest in the 2,700 acres of land slated for acquisition through the Commonwealth of Virginia’s eminent domain authority. In addition, the planned bulk energy distribution hub in Culpeper County—the terminus of the line—sits squarely within a federally designated Opportunity Zone, which provides ten years of federal tax relief on qualifying infrastructure investments.


In preparing our article, we desire Brookfield’s official response to the statements above. We further ask whether the transmission line’s role in delivering infrastructure to this Opportunity Zone means that the full capital cost and all operating profits of the line itself will qualify for the ten-year federal tax exemption.


We are operating under a firm publication deadline and would appreciate your prompt reply.


Best regards,

Paul McDonald

Block Valley Link



Receipts





Brookfield Super-Core InfrastructurePartners Performance Report Q4 2025: https://www.ormondbeach.org/Archive.aspx?ADID=11688


 
 
 
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