TVA, American Electric Power to Develop Regional Transmission Projects

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Jun 02, 2011, 10:20 ET

KNOXVILLE, Tenn., June 2, 2011 /PRNewswire-USNewswire/ -- The Tennessee Valley Authority has signed memorandums of understanding with American Electric Power and Pioneer Transmission LLC to explore joint development of extra-high voltage transmission projects to strengthen the regional electric grid in Tennessee, Kentucky and Virginia.

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"Strong ties with our neighbors are important to reliable, low-cost power for our customers and to easily transfer electricity across our system," said Tim Ponseti, TVA vice president of Transmission Planning and Compliance.

Under the first memorandum, TVA and Pioneer Transmission, a joint venture between American Electric Power and Duke Energy, propose to build 55 miles of 765-kilovolt extra-high voltage transmission lines connecting TVA's Paradise Fossil Plant in Drakesboro, Ky., with AEP's Rockport Generating Plant near Evansville, Ind. The project, which includes a new 765- kV substation at Paradise, would cost about $275 million.

This would be the highest voltage substation in TVA's 16,000-mile transmission network. TVA's highest voltage lines currently are 500 kV.

Under a second memorandum, TVA and AEP are proposing additional transmission expansion to relieve power line loads in the eastern portion of TVA's service territory and to increase power transfer capability between the two systems. This potentially could benefit the eastern United States through TVA's interface with PJM Interconnection, a regional transmission organization that coordinates movement of wholesale electricity to 13 states and the District of Columbia. A specific interconnection has not yet been identified.

"TVA has a rich history of serving the national interest as it fulfills its mandate to improve the economic quality of life in the Tennessee Valley region," said David Till, TVA general manager of Transmission Strategy. "New transmission infrastructure is vital to the nation's future as well as to achieving TVA's renewed vision to be one of the nation's leading providers of low-cost and cleaner energy by 2020."

The Tennessee Valley Authority, a corporation owned by the U.S. government, provides electricity for 9 million people in parts of seven southeastern states at prices below the national average. TVA, which receives no taxpayer money and makes no profits, also provides flood control, navigation and land management for the Tennessee River system and assists utilities and state and local governments with economic development.

www.tva.com/news

SOURCE Tennessee Valley Authority