ETT is a joint venture between subsidiaries of American Electric Power (NYSE:AEP) and Berkshire Hathaway Energy Company (BHE). ETT acquires, constructs, owns and operates transmission facilities within the Electric Reliability Council of Texas (ERCOT), primarily in and around the AEP texas Central Company (TCC) and AEP texas North Company (TNC) service territories.
On Oct. 31, 2007, the Public Utility Commission of Texas (PUCT) issued an order granting a Certificate of Convenience and Necessity (CCN) for ETT to operate as a transmission-only utility providing services in ERCOT, allowing the transfer of approximately $70 million of assets from AEP Texas Central Company to ETT and establishing rates for transmission services.
"By partnering with Berkshire Hathaway Energy Company, a company with a long term commitment to its investments and significant transmission operating experience, AEP enhances its ability to make transmission investments in Texas to meet ERCOT needs," said Calvin Crowder, ETT president. "We look forward to demonstrating ETT’s value to the Texas marketplace and its consumers."
The joint venture will provide an infusion of outside capital into the transmission infrastructure in Texas and brings together two of the preeminent transmission developers in the world. The increased transmission capacity will support continued reliable electric service, enhance the efficiency of the wholesale electric market and encourage the development of renewable generation.
As owner and operator of the nation’s largest transmission system, AEP brings more than 100 years of expertise in planning, siting, building and operating high-voltage transmission to this venture. Berkshire Hathaway Energy Company Energy Holdings Company, with access to the substantial capital resources of its corporate parent, Berkshire Hathaway Inc., is committed to being a long-term investor in the utility sector. Berkshire Hathaway Energy Company is currently the fifth largest electric transmission owner in the United States.
American Electric Power (AEP)
AEP 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 United States AEP also owns the nation’s largest electricity transmission system, an over 40,000-mile network that includes more 765 kilovolt extra-high voltage transmission lines than all other United States 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 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. Information about AEP is available on the Internet at www.aep.comBerkshire Hathaway Energy