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18 April 2007 -- Electric utility Allegheny Energy Inc. said it agreed to form a joint venture with American Electric Power to build and own new electric transmission assets within grid-operator PJM Interconnection.
The two companies will build 765-kilovolt transmission lines and related facilities to link American Electric Power's Amos Station in West Virginia to Allegheny's proposed Kemptown Station in Maryland.
The joint venture will build and own about 250 miles of 765-KV transmission lines. The entire project will cost about $1.8 billion, depending on PJM requirements.
American Electric Power estimated it would pay about $700 million, while Allegheny expects to invest more than $1 billion.
The new company will be equally split between AEP and Allegheny, and managed by a board that includes two representatives from each parent. AEP will have lead responsibility for engineering, designing and constructing the 765-kV elements of the project, and each company will provide services for siting, acquiring rights-of-way, regulatory approvals, and operations and maintenance of the project.
The venture is expected to begin operations in the second half of 2007.
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