7/24/2008

Electric Transmission Texas Joins Consortium To Develop Transmission To Support Texas Wind Initiative

AUSTIN, Texas, July 24, 2008 -- Electric Transmission Texas, LLC, (ETT) has joined with several other Texas transmission providers to form a consortium to jointly develop transmission facilities to enhance wind power development in Texas.

The consortium filed today with the Public Utility Commission of Texas a comprehensive, coordinated proposal for development of transmission for Competitive Renewable Energy Zones (CREZ) under the Scenario 2 plan adopted by the commission July 17. At that time, the commission encouraged transmission parties to work together to help ensure timely development of transmission facilities to support wind generation. Scenario 2 envisions the construction of approximately 2,400 miles of new 345-kV transmission lines and facilities at a projected cost of $4.9 billion.

The filing is available on the ETT website – http://www.ettexas.com.

ETT is a joint venture between subsidiaries of American Electric Power (NYSE: AEP) and MidAmerican Energy Holdings Company to build transmission projects within the Electric Reliability Council of Texas (ERCOT). Other transmission providers in the consortium are AEP Texas Central Company, AEP Texas North Company, LCRA Transmission Services Corporation, Oncor Electric Delivery Company and Sharyland Utilities, LP.

The proposal filed today outlines the transmission facilities that each member of the consortium will develop. Consortium members will assume responsibility for permitting, construction and operation and maintenance of the proposed facilities.

ETT will build and own the transmission facilities within and around the AEP Texas North distribution service territory, including approximately 710 miles of new transmission facilities. AEP Texas Central and AEP Texas North will be responsible for another 145 miles of upgraded transmission lines. LCRA and Oncor propose to develop transmission facilities in and around their service territories, while Sharyland proposes developing transmission facilities in the Texas Panhandle that are not currently in the ERCOT transmission footprint.

The estimated cost to build ETT´s portion of the joint parties´ proposal is between $1.5 billion and $1.7 billion.

"With this filing, the parties express their willingness to work together to develop a comprehensive transmission solution to bring clean, renewable energy to load centers in Texas," said Calvin Crowder, ETT president. "The joint proposal creates the opportunity for more timely and cost-effective completion of the transmission facilities without protracted litigation and dispute among transmission providers.

"We also recognize there is much work ahead of us as we attempt to enlist additional parties, including other qualified transmission providers, to join in settlement of this proceeding," Crowder said. "The members of this consortium look forward to working with others to build consensus around selection of transmission providers to complete the CREZ transmission plan."

MidAmerican Energy Holdings Company, based in Des Moines, Iowa, is a global provider of energy services. Through its energy-related business platforms – PacifiCorp, MidAmerican Energy Company, CE Electric UK, Kern River Gas Transmission Company, Northern Natural Gas Company and CalEnergy – MidAmerican provides electric and natural gas service to more than 6.9 million customers worldwide. MidAmerican subsidiaries PacifiCorp and MidAmerican Energy Company own and operate more than 18,000 miles of electric transmission lines. Information about MidAmerican is available on the Internet at http://www.midamerican.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.

MEDIA CONTACT:
Pat D. Hemlepp
American Electric Power
614/716-1620

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