Pioneer Transmission LLC, a joint venture between American Electric Power (AEP) and Duke Energy, will develop a 55-mi, extra-high-voltage transmission project with Tennessee Valley Authority (TVA) in Indiana and Kentucky.

Under the terms of a memorandum of understanding with TVA, the parties propose to build a 765-kV transmission line connecting AEP’s Rockport Station (east of Evansville, Ind.) with TVA’s Paradise Station in Drakesboro, Ky. The cost of the project, which would also include construction of a new 765-kV substation at Paradise, is estimated at $275 million, subject to approved routing.

“This project, which is the result of thoughtful and creative collaboration between the Pioneer partners and TVA, has the potential to enhance regional reliability in the Indiana and Kentucky areas for decades to come,” said Duke Energy Commercial Businesses Senior Vice President Phil Grigsby.

“By bringing additional extra-high-voltage transmission into service, the Pioneer partners and TVA are taking steps to enhance transmission reliability in this region, meeting needs for today and the future,” said Susan Tomasky, president, AEP Transmission.

Pioneer and TVA will submit the Rockport-Paradise proposal to the PJM Interconnection (PJM) for consideration in its regional planning process. In addition, the project will require siting approval from the Kentucky Public Service Commission.

The Rockport-Paradise project complements the 240-mi Greentown–Rockport transmission line that AEP and Duke proposed in August 2008, when the companies formed Pioneer. Through a final order issued on Jan. 21, 2009, the Federal Energy Regulatory Commission granted the 765-kV Greentown-Rockport project a formula rate and project incentives. Pioneer is working with PJM and MISO to move the project through their respective approval processes.