TOPEKA, KS -- 12/04/08 --
Prairie Wind Transmission LLC today announced
that the Federal Energy Regulatory Commission (FERC) has unanimously
approved its request for key rate components in its proposal to build a
230-mile, 765-kilovolt (kV) transmission line extending from the Wichita
area west to the Dodge City area and south-southwest to the Kansas-Oklahoma
border from Medicine Lodge. Prairie Wind Transmission is a joint venture
between Westar Energy, Inc. (NYSE: WR) and Electric Transmission America
(ETA). ETA is a joint venture between wholly-owned subsidiaries of
American Electric Power (NYSE: AEP) and MidAmerican Energy Holdings
Company.
FERC approved the following rate components:
-- A return on equity of 12.8 percent which includes incentive adders for
participation in the Southwest Power Pool (SPP) and investing in new
transmission facilities that will reduce the cost of electricity and
promote the public interest by providing for the interconnection and
delivery of renewable generation in the SPP;
-- The inclusion of 100 percent of construction work in progress (CWIP)
in rate base during the development and construction period of the project
after the formula rate becomes effective;
-- The recovery of prudently-incurred investment costs in the project in
the event that the project must be abandoned for reasons outside the
company's control;
-- And, regulatory asset treatment of pre-commercial expenses not
included in CWIP that have been incurred to date, as well as expenses
incurred going forward until the formula rate becomes effective.
FERC set aside for hearing the establishment of the formula rate and
associated protocols.
"This is a significant milestone in our plan to build the first 765-kV line
west of the Mississippi River," said Kelly Harrison, president, Prairie
Wind Transmission, and vice president, transmission operations and
environmental services, Westar Energy. "The new line will provide
reasonably priced and reliable electricity to customers, better access to
renewable generation, significant environmental benefits and value to
shareholders."
"FERC's unanimous approval makes it clear that it shares our vision for
constructing an interstate transmission system in the SPP," said Lisa
Barton, president, ETA.
Following the receipt of all necessary regulatory and cost allocation
approvals, the new line is expected to be in service by the end of 2013.
For more information about Prairie Wind Transmission, please visit the Web
site at http://www.prairiewindtransmission.com/.
Westar Energy, Inc. (NYSE: WR) is the largest electric utility in Kansas,
providing electric service to about 675,000 customers in the state. Westar
Energy has about 6,500 megawatts of electric generation capacity and
operates and coordinates approximately 33,000 miles of electric
distribution and transmission lines. For more information about Westar
Energy, visit http://www.WestarEnergy.com.
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.
MidAmerican Energy Holdings Company, based in Des Moines, Iowa, is a global
provider of energy services. Through its energy-related business platforms,
MidAmerican provides electric and natural gas service to more than 6.9
million customers worldwide. These business platforms are Pacific Power,
Rocky Mountain Power and PacifiCorp Energy, which comprise PacifiCorp;
MidAmerican Energy Company; CE Electric UK; Northern Natural Gas Company;
Kern River Gas Transmission Company; and CalEnergy. Information about
MidAmerican is available at www.midamerican.com.
