Columbus, Ohio-based American Electric Power (AEP) and Des Moines, Iowa-based MidAmerican Energy Holdings Co. will form a joint venture as Electric Transmission Texas LLC (ETT) to build transmission facilities in Texas. ETT has filed for approval with the Public Utility Commission of Texas to operate as an electric transmission utility in Texas.
The companies have executed a participation agreement creating the framework for ETT to build and own new transmission facilities within the Electric Reliability Council of Texas (ERCOT) when ETT receives regulatory approval and other closing conditions are met. The companies say they anticipate in excess of $1 billion in projects could be included in the new company during the next several years.
Upon receipt of all required regulatory approvals, AEP Utilities, a subsidiary of AEP, and MEHC Texas Transco LLC, a subsidiary of MidAmerican, each will acquire a 50% interest in the joint venture.
Calvin Crowder, former managing director of regional transmission organization and public policy at AEP, was named executive director of ETT, and Crowder likely will be named president of ETT when the joint venture begins operations.
‘There is a critical need to expand the Texas electric transmission grid to meet growing energy demands, reduce congestion and support development of the competitive renewable energy zones being established in Texas,’ says Crowder.