Through the 50-50 partnership, American Electric Power (AEP) and Duke are proposing to build 240 miles of extra-high voltage 765kV transmission lines and related facilities in Indiana. The project would link Greentown Station with Rockport Station.
Estimated costs for the project are approximately $1 billion, but final costs will depend on the routing of the line, equipment and commodity costs. AEP and Duke will be working with the PJM Interconnection (PJM), a regional transmission organization, and Midwest ISO (MISO) to determine the optimal configuration for the final project. The project will be wholly owned by the joint venture. AEP’s share of the costs will be 50% of the total.
The joint venture will operate as a transmission utility and be subject to the rules and regulations of Federal Energy Regulatory Commission, Indiana, PJM and MISO. Equity ownership of the new company will be equally split between AEP and Duke.
Michael Morris, chairman, president and CEO of AEP, said: The ability of electric utilities to continue providing reliable, reasonably priced electricity to fuel our nation’s economic growth is increasingly challenged by aging, insufficient infrastructure; continued growth in electrical load; rising construction costs and a desire to reduce greenhouse gas emissions.
