Electric Transmission America (ETA), a joint venture of subsidiaries of American Electric Power and MidAmerican Energy Holdings Co., has formed a joint venture company with Westar Energy Inc. to build and own new electric transmission assets in Kansas.

The ETA and Westar joint venture, named Prairie Wind Transmission LLC, is proposing to build approximately 230 miles of extra-high voltage 765-kV transmission facilities extending from Wichita, Kansas, west to a substation northeast of Dodge City, Kansas, and then south to the Kansas border from Medicine Lodge, Kansas. The project will provide enhanced electricity transport in Kansas and support expansion of renewable electricity generation in the region.

Southwest Power Pool's (SPP) estimated costs for the project are approximately $600 million; however, final costs will be dependent on the routing of the line, equipment and commodity costs. Anticipated completion would be in 2013. AEP's ownership share of the joint venture will be 25 percent.

"This project will provide a critical pathway for expansion of renewable generation in Kansas and within the Southwest Power Pool. More than 30,000 megawatts of wind generation has been proposed for transmission interconnection in this region, but there is insufficient transmission capacity available to transport it to where it could be accessed by customers," said Michael G. Morris, AEP chairman, president and chief executive officer. "Our collaboration with Westar and MidAmerican would build the first segment of a larger extra-high voltage transmission highway that has been proposed by the Southwest Power Pool to enhance reliability and support development of the sizable renewable generation resources in the region. Without additional transmission construction, these renewable resources will remain untapped.

"Westar has significant transmission assets and success in gaining approval for transmission projects in Kansas. MidAmerican is the fifth largest transmission owner in the United States, and AEP has more than 100 years of transmission expertise, including owning the nation's largest, and arguably most reliable, electricity transmission system. Our companies share a vision for transmission expansion based on the recognition that the United States needs significant transmission investment to ensure reliability, meet growing electricity demand, better use existing generation and support new generation, including renewables," Morris said.

The Kansas project encompasses the first phase of the Extra-High-Voltage Overlay Study plan released March 3 by SPP. Westar and ETA anticipate filing in the near future seeking authority from the Kansas Corporation Commission to construct, own and operate transmission in Kansas. The companies also will seek rate approval from the Federal Energy Regulatory Commission (FERC) in the coming months.

AEP and MidAmerican operate another transmission joint venture, Electric Transmission Texas, LLC, a transmission-only utility providing transmission services and pursuing opportunities for additional transmission investment within the Electric Reliability Council of Texas.