Investment in Transmission Needed Now
As the largest builder, owner, and operator of transmission in North America, we need to make investments in our vast and aging transmission system to ensure customer reliability. This is an industry-wide concern for electric companies, many who have made major investments in power generation in past years to comply with federal regulations.
Strengthening the Infrastructure
Our transmission system is part of an electrical machine dating back as long as a century. Many parts built in the early 20th century are deteriorating in performance, despite continued costly maintenance and periodic investment.
Since 2012, we’ve been engaged in an infrastructure investment program to strengthen, improve and modernize our 11 state transmission system. We operate part of a larger power grid which includes older equipment at a higher risk of failure and more susceptible to harsh weather-related stressors than newer, physically stronger transmission.
We’re investing approximately $8.1 billion between 2021-2025 to add modernized design standards to enhance reliability, efficiency and resiliency for protection against threats. Our data indicates after investment in aging infrastructure customer outages are reduced by 97 percent – as compared with performance prior to the improvement.
A Grid that Meets Today’s Technological Needs
Sections of the power grid must be upgraded or re-built to integrate with today’s digital and other newer technology. This includes being able to incorporate increasing amounts of renewable energy. Monitoring equipment and telecommunications for physical and cybersecurity must meet today’s needs.
Our Advanced Studies & Technology group evaluates system performance and conditions of aging transmission equipment to identify and prioritize which portions should be replaced to provide the most customer benefit.
We work with Regional Transmission Organizations (RTOs) to evaluate the system on a continuous basis to determine where and when investments should be made. Careful planning in the construction of transmission projects should allow these investments to have almost no direct effect on individuals. Some communities may see an increase in construction activity as projects are built, however the benefits will accrue almost immediately.
Working Together to Build for Tomorrow
We pursue projects and partnerships of all sizes throughout North America. By working toward a common cause, we can overcome many hurdles.
The U.S. transmission system is in the midst of its biggest building boom since the 1970s. This effort is driven by the need to increase reliability, replace aging infrastructure, improve security, relieve congestion and accommodate renewable power sources and generation retirements.
Building new transmission infrastructure will ensure a reliable power supply for future economic growth. We routinely collaborate with partners to efficiently and safely construct transmission projects that benefit communities in our traditional service areas and beyond.
Our current and recently completed regional project joint ventures include:
Electric Transmission Texas, LLC (ETT) — An AEP and Berkshire Hathaway Energy partnership focused on building transmission infrastructure in Texas. AEP provides planning, engineering, project management, financial accounting, right-of-way, construction, and operations services. ETT is involved in a number of projects related to the huge Competitive Renewable Energy Zone (CREZ) effort in Texas.
Grid AssuranceTM — A collaborative effort of eight electric utilities and energy companies to provide improved responses to major events affecting the electric transmission grid by giving transmission-owning entities access to domestically warehouse long lead-time critical equipment.
Transource®
Our competitive transmission affiliate, Transource Energy, pursues competitive, regulated transmission projects within and beyond AEP's service territory under FERC Order 1000. Combining rigorous project management with proven new concepts, Transource minimizes costs and maximizes reliability benefits. Transource has utility status in the Electric Reliability Council of Texas (ERCOT), Midcontinent Independent System Operator (MISO), PJM Interconnection and Southwest Power Pool (SPP) Regional Transmission Operator territories.
Why Partner with AEP Transmission?
- We have a century of expertise in building and operating transmission lines.
- We operate more than 40,000 miles of transmission lines, including 2,110 miles of 765-kV lines, more than any other system in North America.
- We have a long history of innovation in transmission, from the first application of carrier-current telephony to transmission lines for system dispatching to the first Variable Frequency Transformer (VFT) in the United States
- Our experience with transmission systems includes a wide range of climates and regions, from the cold and ice of the West Virginia mountains in winter to the marine climate and heat of a south Texas summer
- Our long track record of successful partnerships includes the contributions of Electric Transmission Texas (ETT) in building the Competitive Renewable Energy Zone (CREZ) project in Texas. ETT, which is staffed by AEP employees, acquires and constructs transmission line and supporting stations, primarily in Texas.
- Our environmental, safety and health commitment is reflected in our philosophy: "No aspect of operations is more important than the health and safety of people. Our customers' needs are met in harmony with environmental protection."