Exelon Corp. (EXC) Monday said that it signed a memorandum of understanding or MOU with Electric Transmission America or ETA and American Electric Power or AEP to develop an extra high-voltage transmission project that will become a significant backbone of the next generation transmission system in the Midwest. ETA is a joint venture between AEP and MidAmerican Energy Holdings Co.
The 420-mile line is expected to strengthen the high-voltage transmission system connecting Illinois to Indiana and through to the border with Ohio, improving overall system reliability while also establishing the infrastructure needed to provide Midwest states access to more sources of renewable energy and meet their state-mandated renewable portfolio standards.
The project will consist of a 765-kilovolt line from the Ohio border through Indiana to the northern portion of Illinois. ComEd, the delivery company in northern Illinois and a subsidiary of Exelon, is expected to lead the building of the Illinois portion of the project.
ETA and AEP will lead the project in Indiana. The project will be built in stages over three to four years, likely between 2015 and 2018, depending on the timing of approvals from federal, regional and state regulators.
Chris Crane, president and COO of Exelon commented, "Not only will this project strengthen the overall transmission system, it also will support the integration of new renewable energy sources and provide a roadmap to help reliably manage the expected retirements of some fossil fuel units, while enhancing broad regional cooperation and planning. This is another way Exelon is helping to drive the nation's transition to a clean energy future."
"Furthermore, if the RITE Line project is approved, it will result in positive economic impacts to Illinois, including job creation and increased economic activity," added Chris Crane.
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