The Virginia State Corporation Commission (SCC) has approved American Electric Power's application to transfer functional control of its transmission assets in Virginia to the PJM Interconnection regional transmission organization.

The commission approved the terms of an agreement reached in late July among AEP subsidiary Appalachian Power Co., the SCC staff, the Virginia attorney general, a coalition of Virginia-based industrial customers, and PJM.

"This is a very positive milestone for our company," said Michael G. Morris, AEP's chairman, president and chief executive officer. "Consumers will benefit from our participation in PJM's wholesale power markets.

"We recognize and understand the desire by Virginia regulators to protect the interests of their constituents by verifying the benefits of our participation in PJM," Morris said. "We are pleased they have completed that process and that we can move forward."

"I am very pleased with today's order from the Virginia State Corporation Commission," said Dana Waldo, president and chief operating officer of Appalachian Power. "The order allows us to proceed toward compliance with state law requiring membership in a regional transmission entity and facilitates AEP's planned Oct. 1 integration into PJM."

AEP will continue to retain ownership of its transmission system.