New JV Eyes High-Capacity Transmission Line Projects in Western Oklahoma
OGE Energy Corp. and Electric Transmission America (ETA), a joint venture of subsidiaries of American Electric Power and MidAmerican Energy Holdings Co., have formed Horizon Transmission LLC to construct high-capacity transmission line projects in western Oklahoma
OGE Energy Corp. and Electric Transmission America (ETA), a joint venture of subsidiaries of American Electric Power and MidAmerican Energy Holdings Co., have formed Horizon Transmission LLC to construct high-capacity transmission line projects in western Oklahoma.
OGE will own 50 percent of the Horizon Transmission LLC joint venture.
Pete Delaney, chairman, president and CEO of OGE Energy Corp. said with this partnership the company will strengthen its offerings in construction, operation and maintenance of transmission critical to the development of Oklahoma's wind resources.
"These extra-high voltage lines will not only help unlock the wind potential and opportunities for investment in Oklahoma, but also will provide a valuable renewable source of electricity to Oklahoma's utility customers," said Delaney.
Separately, OGE's Oklahoma Gas & Electric (OG&E) subsidiary already is proposing to build a 345 kilovolt (kV) transmission line between Woodward and northwest Oklahoma City. That line is targeted for completion in 2010.
The new partnership will allow the companies to lead development of renewable wind by sharing capital costs associated with the planned transmission construction. Work on the Horizon projects is scheduled to begin in the second half of 2009 and is targeted for completion by the end of 2013.
The Horizon projects are subject to creation by the Southwest Power Pool (SPP) of a cost allocation method that would spread costs across the SPP region. The project also requires approval from the Federal Energy Regulatory Commission (FERC). OG&E may seek approval from the Oklahoma Corporation Commission.
The Horizon partnership's initial projects will include 765 kV lines from Woodward 120 miles northwest to Guymon in the Oklahoma Panhandle and from Woodward 50 miles north to the Kansas border. An SPP study estimates cost for the two projects at about $500 million.
According to Delaney, OG&E will contribute its expertise in right of way, operations and maintenance while AEP will provide engineering design and construction oversight.
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