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Frequently Asked Questions - General
Who is Electric Transmission America?
Electric Transmission America, LLC is a joint venture between American Electric Power (AEP) and MidAmerican Energy Holdings Company (MEHC).
American Electric Power 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.
MidAmerican Energy Holdings Company is a global leader in the production of energy from diversified fuel sources including geothermal, natural gas, hydroelectric, nuclear, coal and wind. The company also leads in the supply and distribution of energy in the U.S. and U.K. consumer markets, with approximately 6.7 million electricity and gas customers. MidAmerican Energy Holdings Company is itself is a wholly-owned subsidiary of Berkshire Hathaway.
What is Prairie Wind Transmission, LLC?
Prairie Wind Transmission is an equal venture between Westar and ETA.
What is the project?
Prairie Wind Transmission’s first proposed project will be the highest capacity, most technically advanced transmission line ever built in Kansas or the Southwest Power Pool (SPP). The project is the first segment of the visionary SPP Extra High-Voltage (765 kilovolt) Overlay Plan released earlier this year.
Although we won’t finalize the detailed routing studies until we have heard from potentially affected land owners, communities and Kansas regulators, the new 765 kV line will interconnect to a 345 kV line near Wichita and connect to another 345 kV line near Dodge City. This project will tap some of the best wind resources in the nation and, we believe, will make Kansas a premier exporter of renewable energy to other parts of our nation.
What prompted this relationship between Westar Energy and ETA?
Both companies were exploring opportunities to expand the nation’s transmission infrastructure as part of their overall business strategies. AEP has led the nation in the development of a national interstate transmission overlay using 765-kV technology. Westar has led the state of Kansas in the development of wind energy and new transmission projects. It was a natural fit for us to decide to work together.
In keeping with the company’s vision, ETA is working to:
- Maintain its leadership in technical innovation of transmission systems.
- Set the standards for transmission safety, efficiency and reliability.
- Provide for robust market competition that will benefit customers by eliminating bottlenecks in the U.S. transmission grid.
- Reduce the need for new generation by facilitating the optimal economic dispatch of existing generation assets.
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Who will own new assets that are built?
The companies anticipate a 50-50 ownership of the proposed assets to be built as part of the joint venture agreement.
What will benefit?
This project will enable the tremendous wind resources in the western and southwestern part of Kansas to be delivered to customers throughout Kansas, the region at large, and even better access to eastern markets where renewable wind energy just isn’t available. It will also provide economic benefits in terms of construction jobs, tax revenue and helping local economies near wind farm developments.
For years people in Kansas maybe didn’t think of wind as an energy resource; perhaps like early Pennsylvanian’s not appreciating “oil” in their water wells. Now, as our nation looks to clean, renewable energy, the stiff Kansas breezes have become an asset to our state and even our nation. We may not be the “middle east” of oil, but we’re quickly becoming the “Midwest of wind”.
What will this cost and who will provide the capital?
A typical utility capitalization structure is anticipated with the equity capital being contributed 50-50 by large joint venture partners. It’s too early to estimate the project cost, although a project like this will likely require an ultimate investment of more than a half- billion dollars.
Who pays for transmission lines and facilities?
The Southwest Power Pool (SPP) oversees the tariff that is the basis for transmission charges to customers. Because the project will benefit a broad region, the costs for the lines will be recovered in the prices charged over that broad region, and not just from local Kansans.
Who will build the lines and manage the Prairie Wind Transmission’s affairs?
The companies expect AEP will provide project management services to Prairie Wind Transmission. Engineering and construction of the new 765-kV transmission lines and facilities will be coordinated by Prairie Wind Transmission. The companies expect Westar Energy to handle most of the new company’s administrative affairs and lead its financing plans.
How will the new company go about acquiring right of way for this project?
The new company, after getting input landowners and communities along the route, will propose a specific route, or alternative routes, to regulatory authorities. After considering all the facts, the Kansas Corporation Commission must approve the ultimate route. Then, the company will negotiate with landowners to secure the necessary rights of way.
What if the company can’t come to an agreement with land owners?
Fortunately that is a rare problem, as the company will pay a fair price for the right of way, plus landowners still get to use nearly all property for farming and ranching. However, if we reach an impasse, the courts will decide what the price is that we must pay the landowner.
What environmental impacts will be considered with the siting of the projects?
Consistent with how Westar Energy operates in Kansas, it will adhere to all laws and regulations regarding siting of such projects and will work with interested environmental groups to address any concerns they may have along the way. One advantage to the project as it is designed is that the company believes this is the only line along the route that will ever need to be constructed, reducing the possibility of having two or more lines in the same general area.
Frequently Asked Questions – Regulatory and Government Policy
Will the JV Company be a regulated or unregulated entity?
Prairie Wind Transmission, LLC, will be a utility and follow all applicable rules and regulations of a utility operating within the state of Kansas and the region at large.
Which regulatory bodies will have to approve announced projects?
The Kansas Corporation Commission is the regulatory body having to approve the siting of such projects requiring a Certificate of Convenience and Public Necessity (CCPN). We will be seeking Southwest Power Pool (SPP) guidance and support regarding ultimate approvals for each project.
Who will set the rates for the project?
We anticipate making a filing with the FERC regarding the rates for this project. We expect that the project costs ultimately will be recovered from customers in a wide area, well beyond just the borders of Kansas.
Will the FERC be involved in the approval of this project?
Yes.
Frequently Asked Questions – Technology
What will be the capacity/size of the transmission lines to be built?
All new transmission lines Prairie Wind Transmission will construct will be 765 kV, the highest-capacity transmission lines in the U.S. today. AEP has perfected such designs, having built and used them elsewhere now for almost 40 years. Today no such innovations exist west of the Mississippi River.
Frequently Asked Questions – Financial
How much will Prairie Wind Transmission invest?
The total estimated investment will be approximately $375 Million.
Frequently Asked Questions – Supply/Environmental
How will Prairie Wind Transmission help environmental considerations?
Prairie Wind Transmission’s projects will provide additional transmission capacity needed to enable development of renewable and other new technology generation. These 765 kV lines provide significantly more capacity than lower voltages for similar right-of-way requirements, reducing the need for additional lines. These projects will also reduce system losses by unloading the less-efficient underlying lower voltage systems. These loss savings translate into reduced emissions and lessen the need for additional generation. |
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