Oncor Wind Energy Transmission
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July 25 – Oncor Inc (DJIA: ONCR) revealed in a regulatory filing on July 24 that it has joined hands with five other transmission companies to bid on a wind power transmission line project announced by Public Utility Commission of Texas (PUCT). The consortium, consisting of two units of American Electric Power Co (NYSE: AEP), Electric Transmission Texas (ETT), AEP Texas North Company (TNC), Sharyland Utilities LP and Lower Colorado River Authority Transmission Service Corp (LCRA), has submitted a single bid to jointly build, operate and maintain all the transmission facilities of the Competitive Renewable Energy Zones (CREZ).
The project, nicknamed “Renewable Energy Superhighway” by Oncor, was approved last week and involves the construction of 2,400 miles (3,862 km) of high-voltage power lines at the cost of more than $5 billion. The project will result in the generation of more than 18,000 megawatts of wind power in West Texas, the windiest region in the state. The generated renewable power will then be brought to the central part of the state and distributed across other cities, helping lower energy prices in Texas. Once the transmission lines are built, thousands of additional wind turbines can be built to more than double the renewable energy capacity of Texas.
Apart from the Onkor-led consortium, other utilities, such as the group comprising of City of Garland Power and Light and Texas Municipal Power Agency, have shown interest in the project. By the end of July 24, the PUCT had accepted over a dozen applications expressing interest in the project. According to PUCT spokesman Terry Hadley, the Commission will commence a new process with interested bidders that will result in more formal bids by the end of 2009.
Charles Jenkins, the senior vice president of Oncor’s transmission and system operations, said, “Texas is already a leader in wind energy and this is the next step in maintaining that leadership position. Oncor has demonstrated over the decades that we can work with the state and local communities to build some of the most reliable transmission lines at some of the lowest cost, which is what Texas electric consumers deserve.”
Alternatio Cirqui, EconomyWatch.com Energy Correspondent
