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AEP, Duke Energy to Develop New Transmission Project with TVA in Indiana and Kentucky June 2, 2011

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Pioneer Transmission LLC, a joint venture between American Electric Power (AEP) and Duke Energy, will develop a 55-mile, extra-high-voltage transmission project with Tennessee Valley Authority (TVA) in Indiana and Kentucky.

Under the terms of a memorandum of understanding with TVA, the parties propose to build a 765-kilovolt (kV) transmission line connecting AEP’s Rockport Station (east of Evansville, Ind.) with TVA’s Paradise Station in Drakesboro, Ky. The cost of the project, which would also include construction of a new 765-kV substation at Paradise, is estimated at $275 million, subject to approved routing.

“This project, which is the result of thoughtful and creative collaboration between the Pioneer partners and TVA, has the potential to enhance regional reliability in the Indiana and Kentucky areas for decades to come,” said Duke Energy Commercial Businesses Senior Vice President Phil Grigsby.

“By bringing additional extra-high-voltage transmission into service, the Pioneer partners and TVA are taking steps to enhance transmission reliability in this region, meeting needs for today and the future,” said Susan Tomasky, president, AEP Transmission.

Pioneer and TVA will submit the Rockport-Paradise proposal to the PJM Interconnection (PJM) for consideration in its regional planning process. In addition, the project will require siting approval from the Kentucky Public Service Commission.

Ownership shares of the final project will be determined by TVA and the PJM approval process.

The Rockport-Paradise project complements the 240-mile Greentown–Rockport transmission line that AEP and Duke proposed in August 2008, when the companies formed Pioneer.

Through a final order issued on Jan. 21, 2009, the Federal Energy Regulatory Commission granted the 765-kV Greentown-Rockport project a formula rate and project incentives.

Pioneer is working with PJM and MISO to move the project through their respective approval processes. Pioneer expects to file for utility status in Indiana later this year.

AEP and Duke Energy continue to pursue commercial transmission projects both jointly and independently, per the terms of their joint venture agreement.

Duke Energy’s interest in Pioneer is owned by the company’s Commercial Businesses, which operate independently from its regulated Franchised Electric and Gas unit.

More information about Pioneer Transmission LLC is available at

About American Electric Power
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.

AEP’s transmission system directly or indirectly serves about 10 percent of the electricity demand in the Eastern Interconnection, the interconnected transmission system that covers 38 eastern and central U.S. states and eastern Canada, and approximately 11 percent of the electricity demand in ERCOT, the transmission system that covers much of Texas.

AEP’s utility units operate as AEP Ohio, AEP Texas, Appalachian Power (in Virginia and West Virginia), AEP Appalachian Power (in Tennessee), Indiana Michigan Power, Kentucky Power, Public Service Company of Oklahoma, and Southwestern Electric Power Company (in Arkansas, Louisiana and east Texas). AEP’s headquarters are in Columbus, Ohio. Visit AEP on the web at

About Duke Energy
Duke Energy is one of the largest electric power holding companies in the United States. Its regulated utility operations serve approximately 4 million customers located in five states in the Southeast and Midwest, representing a population of approximately 12 million people. Its commercial power and international business segments own and operate diverse power generation assets in North America and Latin America, including a growing portfolio of renewable energy assets and transmission projects in the United States. Headquartered in Charlotte, N.C., Duke Energy is a Fortune 500 company traded on the New York Stock Exchange under the symbol DUK. More information about the company is available on the Internet at:



AEP - Melissa McHenry

Duke Energy - Greg Efthimiou
800-559-3853 / 24-Hour

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