The Globe and Mail

Go to the Globe and Mail homepage

Jump to main navigationJump to main content

Globe Investor

News Sources

Take control of your investments with the latest investing news and analysis

Press release from PR Newswire

AEP, Duke Energy Transmission Project in Indiana Moving Forward

Thursday, December 08, 2011

AEP, Duke Energy Transmission Project in Indiana Moving Forward11:00 EST Thursday, December 08, 2011First Phase Earns MVP Designation from MISOINDIANAPOLIS, Dec. 8, 2011 /PRNewswire/ -- Pioneer Transmission, a joint venture formed by American Electric Power and Duke Energy in 2008, will begin engineering, permitting and siting activities in 2012 on a 66-mile, 765-kilovolt electric transmission line in Indiana between the existing Greentown substation (approximately 15 miles east of Kokomo) and a new substation called New Reynolds (about 20 miles north of Lafayette). (Logo:  http://photos.prnewswire.com/prnh/20040414/DUKEENERGYLOGO )Pioneer Transmission's Greentown-New Reynolds project was designated today as one of 17 Multi-Value Projects (MVPs) included in the Midwest ISO (MISO) Transmission Expansion Plan. These projects will collectively enhance regional power system reliability, improve market efficiency, enable public policy mandates and facilitate the integration of new generation resources, including renewable energy."This project is the first phase of a broader regional effort to develop a new high-capacity, extra-high-voltage transmission system to meet evolving demand for energy and modernize the electric transmission infrastructure," said Pioneer Transmission President Bob Bradish.The estimated cost of the 66-mile Greentown-New Reynolds line is $245 million. MISO estimates that the 17 MVPs announced today will provide economic benefits ranging from 1.8 to three times the cost of the projects.The actual route of the Greentown-New Reynolds line is still to be determined. Pioneer Transmission will construct and own the 765-kilovolt (kV) New Reynolds substation to handle the interconnection of multiple power line voltages at this location."We're committed to working closely with key stakeholders and communities as we design the project, including transmission line routing," said Bradish. "We'll also collaborate with MISO and PJM Interconnection as we plan transmission investments in Indiana that will boost electric reliability throughout the region."Greentown-New Reynolds is part of a larger, 240-mile transmission project in Indiana originally proposed by Pioneer Transmission in 2008 that would extend from Duke Energy's Greentown substation and terminate at AEP's Rockport substation near Evansville. The total cost of the broader project is estimated at $950 million, subject to variables including transmission line routing and equipment costs.Through an order issued in early 2009, the Federal Energy Regulatory Commission granted Pioneer Transmission's 765-kV Greentown-Rockport project a formula rate and project incentives. To facilitate project development, Pioneer Transmission will file a petition for public utility status with the Indiana Utility Regulatory Commission later this month. The second and third phases of the 240-mile Pioneer transmission line will be evaluated by PJM and MISO during their next planning cycle beginning in 2012.Pioneer Transmission is also working with Tennessee Valley Authority (TVA) on a 765-kV line connecting AEP's Rockport Station (east of Evansville, Ind.) with TVA's Paradise Station in Drakesboro, Ky. AEP and Duke Energy continue to pursue commercial transmission projects both jointly and independently, per the terms of their 50-50 joint venture agreement. Duke Energy's interest in Pioneer is owned by the company's Commercial Businesses, which operate independently from its regulated Franchised Electric and Gas unit.More information about Pioneer Transmission LLC is available at www.pnrtransmission.com.About American Electric PowerAmerican Electric Power (NYSE: AEP) 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. and eastern Canada, and approximately 11 percent of the electricity demand in ERCOT, the transmission system that covers much of Texas. AEP's headquarters are in Columbus, Ohio. Visit AEP on the web at www.aep.com.About Duke EnergyDuke Energy (NYSE: DUK) is one of the largest electric power holding companies in the United States. Its regulated utility operations serve approximately 4 million customers located in five states in the Southeast and Midwest, representing a population of approximately 12 million people. Its commercial power and international business segments own and operate diverse power generation assets in North America and Latin America, including a growing portfolio of renewable energy assets and transmission projects in the United States.Headquartered in Charlotte, N.C., Duke Energy is a Fortune 500 company traded on the New York Stock Exchange under the symbol DUK. More information about the company is available on the Internet at: www.duke-energy.com.MEDIA CONTACTSAEPMelissa McHenry614-716-1120Duke EnergyGreg Efthimiou704-382-1925  24-Hour800-559-3853 SOURCE Duke Energy