COLUMBUS, Ohio, May 19 /PRNewswire-FirstCall/ -- Electric Transmission
America (ETA), a joint venture of subsidiaries of American Electric Power
(NYSE: AEP) and MidAmerican Energy Holdings Co., has formed a joint venture
company with Westar Energy Inc. (NYSE: WR) to build and own new electric
transmission assets in Kansas.
The ETA and Westar joint venture, named Prairie Wind Transmission LLC,
is proposing to build approximately 230 miles of extra-high voltage
765-kilovolt (kV) transmission facilities extending from Wichita, Kan.,
west to a substation northeast of Dodge City, Kan., and then south to the
Kansas border from Medicine Lodge, Kan. The project will provide enhanced
electricity transport in Kansas and support expansion of renewable
electricity generation in the region.
Southwest Power Pool's (SPP) estimated costs for the project are
approximately $600 million; however, final costs will be dependent on the
routing of the line, equipment and commodity costs. Anticipated completion
would be in 2013. AEP's ownership share of the joint venture will be 25
percent.
"This project will provide a critical pathway for expansion of
renewable generation in Kansas and within the Southwest Power Pool. More
than 30,000 megawatts of wind generation has been proposed for transmission
interconnection in this region, but there is insufficient transmission
capacity available to transport it to where it could be accessed by
customers," said Michael G. Morris, AEP chairman, president and chief
executive officer. "Our collaboration with Westar and MidAmerican would
build the first segment of a larger extra-high voltage transmission highway
that has been proposed by the Southwest Power Pool to enhance reliability
and support development of the sizable renewable generation resources in
the region. Without additional transmission construction, these renewable
resources will remain untapped.
"Westar has significant transmission assets and success in gaining
approval for transmission projects in Kansas. MidAmerican is the fifth
largest transmission owner in the United States, and AEP has more than 100
years of transmission expertise, including owning the nation's largest, and
arguably most reliable, electricity transmission system. Our companies
share a vision for transmission expansion based on the recognition that the
United States needs significant transmission investment to ensure
reliability, meet growing electricity demand, better use existing
generation and support new generation, including renewables," Morris said.
The Kansas project encompasses the first phase of the
Extra-High-Voltage Overlay Study plan released March 3 by SPP. Westar and
ETA anticipate filing in the near future seeking authority from the Kansas
Corporation Commission to construct, own and operate transmission in
Kansas. The companies also will seek rate approval from the Federal Energy
Regulatory Commission (FERC) in the coming months.
AEP and MidAmerican operate another transmission joint venture,
Electric Transmission Texas, LLC, a transmission-only utility providing
transmission services and pursuing opportunities for additional
transmission investment within the Electric Reliability Council of Texas.
Westar Energy is the largest electric utility in Kansas, providing
electric service to more than 674,000 customers in the state. Headquartered
in Topeka, Kan., Westar Energy has about 6,200 megawatts of electric
generation capacity and operates and coordinates more than 33,000 miles of
electric distribution and transmission lines.
MidAmerican Energy Holdings Co., based in Des Moines, Iowa, is a global
provider of energy services. Through its energy-related business platforms
-- PacifiCorp, MidAmerican Energy Co., CE Electric UK, Kern River Gas
Transmission Company, Northern Natural Gas Company, and CalEnergy --
MidAmerican provides electric and natural gas service to more than 6.9
million customers worldwide. MidAmerican Energy Holdings Company
subsidiaries PacifiCorp and MidAmerican Energy Company own and operate more
than 18,000 miles of electric transmission lines.
American Electric Power is one of the largest electric utilities in the
United States, delivering electricity to more than 5 million customers in
11 states. AEP ranks among the nation's largest generators of electricity,
owning nearly 38,000 megawatts of generating capacity in the U.S. AEP also
owns the nation's largest electricity transmission system, a nearly
39,000-mile network that includes more 765-kilovolt extra-high voltage
transmission lines than all other U.S. transmission systems combined. AEP's
transmission system directly or indirectly serves about 10 percent of the
electricity demand in the Eastern Interconnection, the interconnected
transmission system that covers 38 eastern and central U.S. states and
eastern Canada, and approximately 11 percent of the electricity demand in
ERCOT, the transmission system that covers much of Texas. AEP's utility
units operate as AEP Ohio, AEP Texas, Appalachian Power (in Virginia and
West Virginia), AEP Appalachian Power (in Tennessee), Indiana Michigan
Power, Kentucky Power, Public Service Company of Oklahoma, and Southwestern
Electric Power Company (in Arkansas, Louisiana and east Texas). AEP's
headquarters are in Columbus, Ohio.
This report made by American Electric Power and its Registrant
Subsidiaries contains forward-looking statements within the meaning of
Section 21E of the Securities Exchange Act of 1934. Although the
registrants believe that their expectations are based on reasonable
assumptions, any such statements may be influenced by factors that could
cause actual outcomes and results to be materially different from those
projected. Among the factors that could cause actual results to differ
materially from those in the forward-looking statements are: electric load
and customer growth; weather conditions, including storms; available
sources and costs of, and transportation for, fuels and the
creditworthiness and performance of fuel suppliers and transporters;
availability of generating capacity and the performance of AEP's generating
plants; AEP's ability to recover regulatory assets and stranded costs in
connection with deregulation; AEP's ability to recover increases in fuel
and other energy costs through regulated or competitive electric rates;
AEP's ability to build or acquire generating capacity (including the
company's ability to obtain any necessary regulatory approvals and permits)
when needed at acceptable prices and terms and to recover those costs
through applicable rate cases or competitive rates; new legislation,
litigation and government regulation including requirements for reduced
emissions of sulfur, nitrogen, mercury, carbon, soot or particulate matter
and other substances; timing and resolution of pending and future rate
cases, negotiations and other regulatory decisions (including rate or other
recovery of new investments in generation, distribution and transmission
service and environmental compliance); resolution of litigation (including
disputes arising from the bankruptcy of Enron Corp. and related matters);
AEP's ability to constrain operation and maintenance costs; the economic
climate and growth in AEP's service territory and changes in market demand
and demographic patterns; inflationary and interest rate trends; volatility
in the financial markets, particularly developments affecting the
availability of capital on reasonable terms and developments impairing
AEP's ability to refinance existing debt at attractive rates; AEP's ability
to develop and execute a strategy based on a view regarding prices of
electricity, natural gas and other energy-related commodities; changes in
the creditworthiness of the counterparties with whom AEP has contractual
arrangements, including participants in the energy trading market; actions
of rating agencies, including changes in the ratings of debt; volatility
and changes in markets for electricity, natural gas, coal, nuclear fuel and
other energy-related commodities; changes in utility regulation, including
the potential for new legislation in Ohio and the allocation of costs
within regional transmission organizations; accounting pronouncements
periodically issued by accounting standard-setting bodies; the impact of
volatility in the capital markets on the value of the investments held by
AEP's pension, other postretirement benefit plans and nuclear
decommissioning trust; prices for power that AEP generates and sells at
wholesale; changes in technology, particularly with respect to new,
developing or alternative sources of generation; other risks and unforeseen
events, including wars, the effects of terrorism (including increased
security costs), embargoes and other catastrophic events.
SOURCE American Electric Power
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Related links:
http://www.aep.com
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CONTACT:
Melissa McHenry, Manager, Corporate Media
Relations, +1-614-716-1120; Analysts, Julie Sherwood, Director,
Investor Relations, +1-614-716-2663, both of American Electric
Power
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