General


  • Who is Electric Transmission America?
    Electric Transmission America, LLC is a joint venture between American Electric Power and MidAmerican Energy Holdings Company.

    American Electric Power is one of the largest electric utilities in the United States, delivering electricity to more than 5 million customers in 11 states. AEP ranks among the nation's largest generators of electricity, owning nearly 38,000 megawatts of generating capacity in the U.S. AEP also owns the nation's largest electricity transmission system, a nearly 39,000-mile network that includes more 765-kilovolt extra-high voltage transmission lines than all other U.S. transmission systems combined.

    MidAmerican Energy Holdings Company is a global leader in the production of energy from diversified fuel sources including geothermal, natural gas, hydroelectric, nuclear, coal and wind. The company also leads in the supply and distribution of energy in the U.S. and U.K. consumer markets, with approximately 6.9 million electricity and gas customers.

  • What is Tallgrass Transmission, LLC?
    Tallgrass Transmission is an equal venture between OGE Energy Corp. and ETA.

  • What is the project?
    Tallgrass Transmission's first proposed project will be the highest capacity, most technically advanced transmission line ever built in Oklahoma. The project is part of the visionary Southwest Power Pool extra high-voltage (765 kilovolt) Overlay Plan released in early 2008. Although we won't finalize the detailed routing studies until we have heard from potentially affected land owners and communities, the new 765-kV line 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. The project underscores the role of Woodward as an important hub of wind generation, forming the intersection of key transmission facilities capable of collecting power generated by wind and transporting it to markets both within and outside the region. As such, this project will make Oklahoma a premier exporter of renewable energy to other parts of our nation.

  • What prompted this relationship between OGE Energy Corp. and ETA?
    Both companies were exploring opportunities to expand the nation's transmission infrastructure as part of their overall business strategies. AEP has led the nation in the development of a national interstate transmission overlay using 765-kV technology. OGE Energy is a leader in the state of Oklahoma in the development of wind energy and new transmission projects. It was a natural fit for us to decide to work together. In keeping with the company's vision, ETA is working to:

    • Maintain its leadership in technical innovation of transmission systems;
    • Set the standards for transmission safety, efficiency and reliability;
    • Provide for robust market competition that will benefit customers by eliminating bottlenecks in the U.S. transmission grid; and
    • Reduce the need for new generation by facilitating the optimal economic dispatch of existing generation assets.

  • Who will own new assets that are built?
    The companies anticipate a 50-50 ownership of the proposed assets to be built as part of the joint-venture agreement.

  • What will benefit?
    This project will enable the tremendous wind resources in the western part of Oklahoma to be delivered to customers throughout Oklahoma, the region at large, and even better access to eastern markets where renewable wind energy isn't available. It also will provide economic benefits in terms of construction jobs, tax revenue and helping local economies near wind farm developments.

    As our nation looks to clean, renewable energy, the stiff Oklahoma breezes have become an asset to our state and even our nation.

  • What will this cost and who will provide the capital?
    A typical utility capitalization structure is anticipated with the equity capital being contributed 50-50 by large joint-venture partners. It's too early to estimate the project cost, although a project like this will likely require an ultimate investment of more than a half-billion dollars or more.

  • Who pays for transmission lines and facilities?
    The Southwest Power Pool oversees the tariff that is the basis for transmission charges to customers. Because the project will benefit a broad region, the costs for the lines should be recovered in the prices charged over that broad region, and not just from local Oklahomans.

  • Who will build the lines and manage Tallgrass Transmissions' affairs?
    The companies expect AEP will provide project management services to Tallgrass Transmission. Engineering and construction of the new 765-kV transmission lines and facilities will be coordinated by Tallgrass Transmission. The companies expect OGE Energy to handle most of the new company's administrative affairs and lead its financing plans.

  • How will the new company acquire right of way for this project?
    Tallgrass Transmission, after getting input from landowners and communities along the route, will develop a specific route. The company will then negotiate with landowners to secure the necessary rights of way.

Regulatory and Government Policy


  • Will Tallgrass Transmission be a regulated or unregulated entity?
    Tallgrass Transmission will be a utility and follow all applicable rules and regulations of a utility operating within the state of Oklahoma and the region at large.

  • Which regulatory bodies will have to approve announced projects?
    We will be seeking Southwest Power Pool guidance and support regarding ultimate approvals for the project.

  • Who will set the rates for the project?
    We have filed with the FERC regarding the rates for this project. We expect that the project costs ultimately will be recovered from customers in a wide area, well beyond just the borders of Oklahoma.

  • Will the FERC be involved in the approval of this project?
    Yes.

Technological


  • What will be the capacity/size of the transmission lines to be built?
    The transmission lines Tallgrass Transmission will construct will be 765-kV, the highest-capacity transmission lines in the U.S. today. AEP has perfected such designs, having built and used them elsewhere now for almost 40 years. Today no such innovations exist west of the Mississippi River.

Financial


  • How much will Tallgrass Transmission invest?
    The total estimated investment will be approximately $500 million.

Supply/Environmental


  • What environmental impacts will be considered with the siting of the projects?
    Consistent with how OGE Energy operates in Oklahamoa, Tallgrass Transmission will adhere to all laws and regulations regarding siting of such projects and will work with interested environmental groups to address any concerns they may have along the way. One advantage to the project as it is designed is that the company believes this is the only line along the route that will ever need to be constructed, reducing the possibility of having two or more lines in the same general area.

  • How will Tallgrass Transmission help environmental considerations?
    Tallgrass Transmission's projects will provide additional transmission capacity needed to enable development of renewable and other new technology generation. These 765-kV lines provide significantly more capacity than lower voltages for similar right of way requirements, reducing the need for additional lines. These projects will also reduce system losses by unloading the less-efficient underlying lower voltage systems. These loss savings translate into reduced emissions and lessen the need for additional generation.