DATC, a joint venture of Duke Energy and American Transmission Co., acquired the Zephyr Power Transmission Project from a subsidiary of Pathfinder Renewable Wind Energy LLC. Pathfinder is developing a wind power project on more than 100,000 acres near Chugwater, Wyo., and has committed to use at least 2,100 megawatts (MW) of the Zephyr project’s 3,000-MW capacity.

The Zephyr project would originate in Chugwater and terminate in the Eldorado Valley just south of Las Vegas, Nev. The 500-kilovolt high-voltage direct current project, estimated at approximately $3.5 billion, will include an AC/DC converter station at each terminus.

Phil Grigsby, Duke Energy Commercial Businesses senior vice president, said, “Zephyr is an ambitious energy infrastructure project that is laser-focused on providing an integrated solution to a recurring problem facing America: How do we get clean, renewable energy to the population centers?”

Grigsby notes that California may be the largest market for renewable power in the country with a renewable energy portfolio standard of 33 percent. DATC’s Zephyr project creates a highly efficient and strategic connection between the wind-rich areas of Wyoming and electricity load centers in California and the southwestern U.S.

While wind generation and transmission development are being pursued separately, Pathfinder and DATC have agreed to work together to increase the viability of the integrated projects. “The success of this transmission project is dependent upon on the success of Pathfinder’s generation project, and vice versa,” said John Flynn, vice president, Strategic Planning and Business Development for American Transmission Co. “By working together on a parallel development path, we avoid ‘the chicken and the egg’ dilemma that has often challenged major projects like this.”

Jeff Meyer, managing partner of Pathfinder, said, “Pathfinder remains a Wyoming-based company, and we look forward to continuing our commitment to the state. The time was right to bring a proven, experienced transmission developer to the team, and in DATC we found an ideal partner.”

In 2012, DATC will continue its studies, begin environmental analysis, and design routing and siting before seeking regulatory approvals. If approved, the transmission line would be in service in 2020.

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ATC – Anne Spaltholz, 877-506-6117
Duke – Greg Efthimiou, 704-382-1925

CHARLOTTE, N.C. – Duke-American Transmission Co. today released its first set of transmission projects that include seven new transmission line projects in five Midwestern states. These projects will fill gaps in the existing transmission grid, improve electric system reliability and market efficiency, provide economic benefits to local utilities and enable increased delivery of high-quality renewable resources.

In submittals to regional transmission organizations MISO and PJM, DATC will propose seven distinct projects in Iowa, Wisconsin, Illinois, Indiana and Ohio. The DATC projects include more than 1,300 circuit miles of 345-kilovolt lines and 550 miles of 500-kV high-voltage direct-current lines. The individual projects range from 65 to 696 miles and have a total cost of approximately $4 billion.

“These projects represent strategic solutions,” says John Flynn, vice president of Strategic Planning and Business Development for American Transmission Co. “The DATC projects relieve congestion on the grid, provide operational flexibility to enhance system reliability, and deliver economic and market benefits. Some of these projects are stand-alone projects, and some work in conjunction with MISO’s multi-value projects and other DATC projects.”

“These projects are not just lines drawn on a map or a one-size-fits-all solution,” said Phillip Grigsby, Duke Energy Commercial Businesses senior vice president. “We’ve taken a methodical approach to address specific regional transmission needs by building upon work already done and developing innovative solutions in the areas where they are most needed.”

This week, DATC will submit these projects to MISO for inclusion in the Midwest Transmission Expansion Plan; a subset of these projects will be submitted to PJM’s Regional Transmission Expansion Plan. The company will commence meetings with the local utilities, regulators, public officials and agencies in the five states in which the projects are proposed, as well as with federal and regional energy regulators. The projects would be constructed in phases over the next 10 years, with certain projects serving as prerequisites for others.

The companies believe Duke-American Transmission Co. (DATC) is well-positioned to help address increasing demand for affordable, reliable transmission capacity in the United States and Canada. DATC has begun identifying opportunities to build, own and operate new transmission projects that meet potential customers’ capacity and voltage requirements.

DATC will own all of the transmission assets it builds and operates. Equity ownership of DATC will be split equally between Duke Energy and ATC.

The joint venture will operate as a transmission utility. As a result, it will be subject to the rules and regulations of the Federal Energy Regulatory Commission, MISO, PJM and various other independent system (grid) operators, as well as any states in which DATC develops projects. Per the structure of their new joint venture, Duke Energy and ATC may continue to develop transmission projects independently.

“Thoughtful, well-designed transmission projects afford customers, regulators and other key stakeholders superior flexibility as they determine which energy resources can help meet demand for electricity in the decades to come,” said Duke Energy Commercial Businesses Senior Vice President Phil Grigsby. “Duke Energy and ATC share the belief that sound transmission infrastructure can serve as a springboard for next-generation energy technologies.”

“This joint venture is an important step in advancing ATC’s strategy to grow outside our current service area,” said John Flynn, ATC vice president of Strategic Planning and Business Development. “We have been very successful in planning, permitting and building transmission in the Midwest. Through our partnership with Duke Energy, we will take our expertise to other parts of North America to develop transmission solutions that not only deliver reliable electricity, but also economic and public policy benefits.”