COLUMBUS, Ohio, April 4, 2012 — American Electric Power (NYSE: AEP) and Great Plains Energy (NYSE: GXP) have formed a new company to develop and invest in transmission. Through Transource EnergySM LLC (Transource), AEP and Great Plains Energy initially plan to pursue competitive transmission projects in the PJM Interconnection, Southwest Power Pool (SPP) and Midwest ISO (MISO) transmission regions. AEP owns 86.5 percent of Transource. Great Plains Energy owns 13.5 percent.
"Our nation and utility customers have benefited from the significant transmission investments made by AEP and other utilities decades ago, but it is critical that we move forward with substantial new transmission investment. Transmission infrastructure expansion is essential to ensure that the U.S. continues to have a reliable transmission grid to support both fundamental changes in how we generate electricity and future economic growth," said Nicholas K. Akins, AEP president and chief executive officer. "Order 1000, issued by the Federal Energy Regulatory Commission last year, creates new opportunities for competitive transmission investment by giving incumbent and non-incumbent transmission developers similar cost-recovery mechanisms for regional and interregional projects. Increased competition in the transmission space will foster cost-effective grid expansion for the benefit of customers."