Tallgrass Transmission, LLC., is a joint venture formed by OGE Energy Corp. and Electric Transmission America — a joint venture of subsidiaries of American Electric Power and MidAmerican Energy Holdings Company — to build and own new electric transmission assets in Oklahoma.
"Oklahoma again has an opportunity to grow its economy while delivering a highly valued resource to our region," said Pete Delaney, chairman, president and CEO of OGE Energy Corp. "This time, it's the clean and renewable energy resource provided by the consistent winds present in western Oklahoma.
"These extra-high voltage lines will not only help unlock the wind potential and opportunities for investment in Oklahoma, but also will provide a valuable renewable source of electricity to Oklahoma's utility customers."
The partnership will allow the companies to lead development of renewable wind by sharing capital costs associated with the planned transmission construction. Work on the Tallgrass projects is scheduled to begin in the second half of 2009 and is targeted for completion by the end of 2013.
The Tallgrass projects are subject to creation by the Southwest Power Pool of a cost allocation method that would spread costs across the SPP region. The project also requires approval from the Federal Energy Regulatory Commission. OG&E may seek approval from the Oklahoma Corporation Commission.
The Tallgrass partnership's initial projects will include 765-kV lines from Woodward 120 miles northwest to Guymon in the Oklahoma Panhandle and from Woodward 50 miles north to the Kansas border. Southwest Power Pool's estimated costs for the projects is approximately $500 million.
Separately, OGE Energy Corp.'s Oklahoma Gas & Electric subsidiary already is proposing to build a 345-kV transmission line between Woodward and northwest Oklahoma City. That line is targeted for completion in 2010.
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.
