INDIANAPOLIS, 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).
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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 Power
American 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 Energy
Duke 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 CONTACTS
AEP
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Melissa McHenry
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614-716-1120
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Duke Energy
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Greg Efthimiou
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704-382-1925
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24-Hour
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800-559-3853
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SOURCE Duke Energy