AEP has existing and planned transmission projects in the Electric Reliability Council of Texas (ERCOT) through its Electric Transmission Texas joint venture with MidAmerican Energy. The company is also pursuing transmission projects outside its footprint and outside ERCOT through joint ventures with other companies, including Electric Transmission America, AEP’s broader partnership with MidAmerican.
AEP is expected to invest $118m in Transco activities in 2010.
Michael Morris, chairman, president and CEO of AEP, said: “The Transco will be our vehicle for much of AEP’s future on-system, wholly-owned transmission investment. These investments will include a wide range of on-system transmission improvements, things like greenfield projects, station additions and system upgrades. Pursuing these activities in a Transco, with formula rates adjusted annually by the Federal Energy Regulatory Commission (FERC), benefits customers by enhancing AEP’s access to capital.
“We are seeking state utility status for the Transco in states where that designation is required, and we will join both PJM and Southwest Power Pool as a transmission owner. We plan to file a FERC tariff for the Transco later this year, with rates effective in mid-2010.”
