Southwest Grid Group Approves 6 Projects Worth $1 Billion
April 27 2010 - 5:06PM
Dow Jones News
The Southwest Power Pool, which oversees the power grid in
southern and midwestern U.S. states, said Tuesday it has approved
more than $1 billion of transmission projects to be developed from
Nebraska to Texas.
The projects will improve the regional electric grid by reducing
congestion on power lines, expanding power-transportation
opportunities across the grid, and allowing new renewable and other
power generation to be added to the grid, the group said.
To ensure the projects are built promptly, the SPP has asked
federal regulators for permission to spread the costs of the
projects among utilities that will benefit from the increased
power-shipping capacity and electric reliability. Under the plan,
filed with the Federal Energy Regulatory Commission earlier this
month, project costs will be assigned to electric utilities across
the entire SPP system, based on the utilities' historic use of the
region's transmission system.
Utilities that own existing transmission lines and substations
in the project areas will be given the "right of first obligation"
to build the projects, said SPP spokeswoman Emily Pennel. If a
utility chooses not to build a project, the SPP will select one or
more other developers to build it, Pennel said.
The approved projects include: 345-kilovolt lines between
Spearville and Wichita, Kan., estimated to cost about $360 million,
which the SPP will first offer to Sunflower Electric Power Corp.
and Mid-Kansas Electric Co. LLC--utilities owned by rural electric
cooperatives--and Westar Energy Inc. (WR), which owns the existing
transmission infrastructure.
A 345-kV line between Comanche County, Kan., and Woodward,
Okla., estimated to cost about $110 million, will first be offered
to Sunflower, Mid-Kansas and OGE Energy Corp. (OGE) unit OG&E,
according to the SPP.
A 345-kV line between Woodward, Okla., and Hitchland, Texas,
estimated to cost $250 million, will first be offered to OG&E
and Xcel Energy Inc. (XEL) unit Southwestern Public Service Co.
A 345-kV line between Nebraska City, Neb., and Sibley, Mo.,
projected to cost $300 million, will first be offered to municipal
utility Omaha Public Power District and Great Plains Energy Inc.
(GXP) unit Kansas City Power & Light.
A 345-kV line between Valliant, Okla., and Texarkana, Texas,
estimated to cost $130 million, will first be offered to American
Electric Power Co. Inc. (AEP), as will an $840 million project to
install new equipment in Tulsa County, Okla., the SPP said.
-By Cassandra Sweet, Dow Jones Newswires; 415-439-6468;
cassandra.sweet@dowjones.com
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