AEP Proposes New 765-kv Transmission Superhighway
Columbus, OH - American Electric Power filed with the Federal Energy Regulatory Commission (FERC) and the PJM Interconnection (PJM) to build a new 765-kilovolt (kV) transmission line stretching from West Virginia to New Jersey. The proposed transmission superhighway will span approximately 550 miles and is designed to reduce PJM congestion costs by substantially improving west-east transfer capability by approximately 5,000 megawatts (MW) and reducing transmission line losses by approximately 280 MW. It also will enhance reliability in the eastern transmission grid.
"We must move forward and address the current inadequacies of our nation's existing transmission infrastructure. Congress and the Federal Energy Regulatory Commission have identified that investment in transmission is crucial to ensure the reliability of the electricity grid and the growth potential of our economy," said Michael G. Morris, AEP's chairman, president and chief executive officer. "It makes sense that AEP would be the first to step up and propose a new transmission superhighway to address issues plaguing the eastern transmission grid. AEP was the first utility in the United States to recognize the value of investing in a network of 765-kV transmission lines, the highest-voltage transmission ever built, to move power from remote generators to load centers. Today, AEP's 765-kV network, which stretches more than 2,000 miles, is arguably the most reliable, efficient transmission network in the United States.
"Additional high-voltage transmission highways are absolutely necessary to relieve congestion within the eastern grid. In 2004, PJM transmission congestion costs totaled approximately $800 million, and in 2005, congestion costs are expected to exceed $1 billion. These costs are reflected in higher wholesale electricity prices, particularly during peak demand periods, when available, lower-cost electricity can't be transported to where it is needed. This line will reduce those congestion costs, cut line losses, enhance reliability and provide the transmission capacity and flexibility that is critical for construction of new fuel-diverse generation, including renewables," Morris said.
AEP's proposed transmission line, called the AEP Interstate Project, would originate at AEP's Amos transmission station in Putnam County, W.Va., connect through Doubs Station in Frederick County, Md., and terminate at the Deans Station in Middlesex County, N.J. The proposed route follows a corridor conceptually identified by PJM as Project Mountaineer, a transmission route needed to address critical transmission congestion within the PJM footprint. Exact routing of the line would be determined after PJM approves the project. AEP will work with PJM, other affected transmission owners and stakeholders throughout the siting process.
AEP also has filed with the Department of Energy to have the proposed route designated as a National Interest Electric Transmission Corridor (NIETC). The Energy Policy Act of 2005 provides for NIETC designation for areas that are experiencing electric energy transmission capacity constraints or congestion that adversely affects consumers.
A new AEP subsidiary, AEP Transmission Co., LLC, will own the line and undertake construction of the project. The projected cost is approximately $3 billion. The anticipated in-service date is 2014 assuming three years to site and acquire rights-of-way and five years to build the line.
SOURCE: American Electric Power