Named Grid Assurance, the new company intends to provide cost-effective solutions to subscribers to speed restoration and enhance electric grid resiliency.
The joint venture partners include affiliates of Berkshire Hathaway Energy, Duke Energy, Edison International, Eversource Energy, Exelon, Great Plains Energy, and Southern Company in addition to American Electric Power.
The firms have filed an application with the US Federal Energy Regulatory Commission (FERC) approval to launch the new company to facilitate transmission-owning entity address grid resiliency mandates.
American Electric Power said that the proposed company will be more cost-effective for high-impact, low-frequency events, compared to companies which independently secure emergency spare equipment. The spare equipment will be owned and maintained at strategically located warehouses to facilitate faster service.
Grid Assurance will complement existing programs of transmission owners as well as industry initiatives such as the spare transformer equipment program (STEP).
The partners expect Grid Assurance to commence operations in 2016.
