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Transmission system upgrades approved by PJM Board
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Investments will improve reliability and deliver more power to meet growing demand
COLUMBUS, Ohio, Feb. 27, 2025 /PRNewswire/ -- American Electric Power (Nasdaq: AEP), and its competitive transmission affiliate Transource Energy, LLC1 (Transource Energy) will invest approximately $1.7 billion in transmission system upgrades to improve reliability and increase power availability in states throughout the PJM footprint including Indiana, Maryland, Ohio, Virginia, and West Virginia. The companies' proposals were selected by the PJM Board to address forecasted conditions that would create reliability concerns.
"Energy demand is growing at a pace our nation has not seen in decades. Building or upgrading our infrastructure to continue delivering reliable power is essential to fueling economic growth and meeting the needs of our customers," said Bill Fehrman, AEP president and chief executive officer. "Our experience building the largest transmission system in North America made us an ideal candidate to help address the needs that PJM identified during their planning process. Our teams are ready to get to work engaging with our communities and stakeholders and are excited about being part of powering additional economic development opportunities in the region."
These projects were proposed through the Regional Transmission Expansion Plan (RTEP) process. Through the RTEP process, PJM asks transmission developers to submit project solutions to address transmission system needs and then selects the proposals that offer optimal solutions. PJM is seeking projects in this window to be in service in 2029.
AEP submitted project proposals last year with solutions ranging from constructing new lines and new stations to upgrading existing power lines and replacing existing substation equipment. Collectively, these projects are crucial for ensuring reliable electric service, maintaining affordability and meeting future energy demands.
Of the $1.7 billion of investments, approximately $1.1 billion will be advanced through Transource Energy as part of a joint venture with Dominion Energy and FirstEnergy Transmission, LLC. The joint venture, Valley Link Transmission Company, LLC, was selected to develop several competitive transmission projects, including two 765 kilovolt transmission lines in West Virginia, Virginia, and Maryland.
The remaining $600 million in projects were approved for AEP's Transmission Companies and operating companies in Indiana, Ohio and Virginia. All projects are in the early stages of development and the company is committed to collaborating with residents, local governments and other stakeholders in the project communities at every stage of the process. Engagement with stakeholders about the benefits of these projects is crucial as decision-making and planning progresses.