Zacks_Analysts' Blog : American Electric JV Progressing - Analyst Blog

The transmission joint venture (JV) between the subsidiaries of American Electric Power (AEP) and MidAmerican Energy Holdings Company, Electric Transmission America (ETA), has announced Phase One results of the Strategic Midwest Area Transmission Study (SMARTransmission Study). The study evaluates the extra-high voltage (EHV) transmission alternatives for new transmission development in the Upper Midwest. It also studies the transportation system required for transporting energy to population and electricity load centers.



Electric Transmission America had sponsored the study along with American Transmission Company, Exelon Corp. (EXC), NorthWestern Energy (NWE), Xcel Energy (XEL) and MidAmerican Energy Company, a subsidiary of MidAmerican Energy Holdings Company. The sponsors chose Quanta Technology LLC for conducting the study.



In Phase One, Quanta evaluated eight transmission alternatives designed to support the integration of 56.8 gigawatts of wind generation within the study area. The region of study includes North Dakota, South Dakota, Nebraska, Minnesota, Iowa, Missouri, Wisconsin, Illinois, Indiana, Michigan and Ohio. This translates into enough energy to power more than 15 million households.



Furthermore, the Phase One results suggest three alternatives for further study based on a rigorous reliability assessment and stakeholder input. The three alternatives include a 765-kilovolt (kV) EHV transmission, a 765 kV combined with limited use of high-voltage direct current transmission lines, and a combination of both 345-kV and 765-kV transmission lines.



The JV plans to further evaluate these three alternatives in the second phase of the study. The second phase is scheduled for completion in the third quarter of 2010.



The primary goal of SMARTransmission Study is to develop a 20-year transmission plan that ensures reliable electricity transport, provides an efficient transmission system to integrate new generators and foster efficient markets, minimizes environmental impacts, and supports state and national energy policies and goals. The study was designed to incorporate a high level of stakeholder input.



The Electric Transmission America JV, a 50-50 partnership between the subsidiaries of AEP and MidAmerican Energy Holdings Company, was organized to identify and invest in high-voltage transmission projects (345 kV or higher) located in North America outside of the Electric Reliability Council of Texas (ERCOT). The two companies also have an existing joint venture agreement to build transmission in ERCOT. ETA's current joint venture projects include Prairie Wind Transmission in Kansas and Tallgrass Transmission in Oklahoma.
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