AEP's Current & Proposed Transmission System
The nation's existing transmission system is aging and insufficient to meet long-term
energy needs. It was built to serve utility load and to enhance reliability among
interconnected utilities – not to facilitate the transfer of energy in a competitive
marketplace. Nor was it designed to transmit renewable resources, such as wind and
solar power, which may be generated far from where it is needed. As demands on our
transmission system evolve, so too must our expectations and, ultimately, how the
system is designed. Our existing 765 kV system provides a good foundation for expanding
the nation's extra-high voltage (EHV) transmission network to meet nearand long-term
energy needs.
We support development of a national interstate EHV transmission system –
the electrical equivalent of our interstate highway system. Such a system would
jump-start the development of a robust, modern electric grid to reinforce the strength
of the existing system and allow us to deliver power where it's needed, when it's
needed. We believe the best way to develop this system is through federal oversight
and to encourage its development through incentives. Such an interstate transmission
system is essential to ensuring a sustainable future for the nation. We are committed
to this vision and will work with others to advance it.
A modern EHV system would eliminate bottlenecks, increase energy efficiency and
congestion, and enable more renewable energy to be brought to market, foster greater
competition and improve the system's reliability. For example, in a study completed
in 2007 in conjunction with the U.S. Department of Energy (DOE), the National Renewable
Energy Laboratory, and the American Wind Energy Association (AWEA), AEP determined
that a 19,000-mile 765 kV transmission system that overlays the existing network
could help achieve AWEA's long-term goal of securing up to 20 percent of the nation's
power from wind.
The system, as proposed, would cost approximately $60 billion to build (in 2007
dollars), which represents onethird the cost of comparable capacity at 345 kV. It
also uses less than one-quarter of the land needed for a right-of-way of an equivalent
345 kV system. In addition to the benefits of bringing more renewable power to market,
such a 765 kV network would free capacity on lower voltage transmission lines (such
as existing 500 kV, 345 kV and 230 kV circuits). This is particularly important
because this additional capacity provides more operational and maintenance flexibility
and significantly improves reliability and efficiency.
Many of our stakeholders generally support new transmission but are cautious in
their support because they want certainty that AEP will consider factors such as
biodiversity when siting and building new lines. Some customers have told us the
growth of AEP's transmission system is tied to the growth of their companies because
they can only expand and grow where they have access to the electricity needed for
their businesses.
Our vision for a 550-mile transmission line from West Virginia into New Jersey,
announced in January 2006, is becoming a reality. The first step is a joint venture
with Allegheny Energy to build the 290-mile Potomac-Appalachian Transmission Highline
(PATH). One section of the route – 244 miles – will consist of 765 kV
transmission lines.
The project is slated to start at AEP's Amos substation near St. Albans, W.Va.,
and run to Allegheny's Bedington substation, near Martinsburg, W.Va. Another 46
miles will consist of 500 kV transmission lines from Bedington to a new station
to be built near Kemptown, near Frederick, Md. The Kemptown segment will be owned
solely by Allegheny Energy. Siting studies for these projects are expected to begin
in 2008.
While PATH has received approval from PJM Interconnection LLC, the regional transmission
organization responsible for transmission planning for the area, state and local
approvals must still be obtained. PJM has identified the corridor as an area in
critical need of additional transmission capacity and has requested that the new
line be in service by 2012.
In addition, the PATH project falls within an area that has been designated by the
DOE as a National Interest Electric Transmission Corridor, which recognizes the
need to address reliability and congestion concerns in the region. AEP believes
that completing PATH will improve energy efficiency and provide greater reliability
while reducing high congestion costs for the eastern PJM region.
We also received regulatory approvals to form a joint venture with MidAmerican Energy
Holdings Co., known as Electric Transmission Texas (ETT). We have begun assigning
major transmission projects to ETT and we also advocated a proposal to build 1,000
miles of transmission lines in Texas to support the state's development of its Competitive
Renewable Energy Zones. We also signed an agreement with ITC Transmission to evaluate
the feasibility of extending 765 kV lines through Michigan.
In response to the growing importance of these opportunities to expand the nation's
EHV system, the transmission organization was reorganized to report directly to
AEP's chairman.
