AEP Affiliates to Invest $1.7B in PJM Transmission Upgrades
American Electric Power and its competitive transmission affiliate, Transource Energy, LLC (Transource Energy), are set to invest approximately $1.7 billion in transmission system enhancements aimed at bolstering reliability and expanding power availability across several states within the PJM Interconnection footprint. These states include Indiana, Maryland, Ohio, Virginia, and West Virginia. This significant investment is the result of a selection process by the PJM Board, which identified critical infrastructure projects necessary to address forecasted conditions that could pose reliability concerns in the near future.
The demand for electricity in the United States is growing at an unprecedented pace, requiring substantial investments in transmission infrastructure to ensure that the power grid remains stable, efficient, and capable of meeting the increasing energy consumption needs of consumers and businesses. Bill Fehrman, President and Chief Executive Officer of AEP, emphasized the importance of this investment in addressing the evolving energy landscape.
“Energy demand is growing at a pace our nation has not seen in decades. Building or upgrading our infrastructure to continue delivering reliable power is essential to fueling economic growth and meeting the needs of our customers,” Fehrman stated. “Our experience building the largest transmission system in North America made us an ideal candidate to help address the needs that PJM identified during their planning process. Our teams are ready to get to work engaging with our communities and stakeholders and are excited about being part of powering additional economic development opportunities in the region.”
The projects selected for investment were proposed through the Regional Transmission Expansion Plan (RTEP) process. This process allows PJM to assess current and future transmission system requirements and solicit project proposals from transmission developers. Proposals are then evaluated to determine the most effective and efficient solutions for enhancing grid reliability and capacity. The projects approved during this process are scheduled to be operational by 2029, reinforcing the long-term strategic vision for the region’s power infrastructure.
AEP submitted a diverse range of project proposals in the previous year. These proposals included constructing new transmission lines, establishing new electrical substations, upgrading existing power lines, and replacing outdated substation equipment. Together, these initiatives are designed to enhance the overall stability of the power grid, maintain cost-effectiveness, and meet projected energy demands across PJM’s service territory.
Out of the total $1.7 billion investment, approximately $1.1 billion will be executed through Transource Energy as part of a joint venture with Dominion Energy and FirstEnergy Transmission, LLC. This collaboration, operating under the name Valley Link Transmission Company, LLC, has been entrusted with developing several competitive transmission projects. Among these initiatives are two high-voltage 765-kilovolt transmission lines spanning West Virginia, Virginia, and Maryland. These transmission lines are expected to play a crucial role in strengthening the regional electric grid, enhancing resilience against disruptions, and facilitating the efficient distribution of power.
The remaining $600 million of the investment will be directed toward projects under AEP’s Transmission Companies and operating companies in Indiana, Ohio, and Virginia. These initiatives will involve system upgrades and modernization efforts aimed at optimizing the performance of the transmission network. Given that these projects are still in the early phases of development, AEP remains committed to fostering collaboration with local communities, government entities, and other key stakeholders throughout every stage of the planning and implementation process.
Stakeholder engagement is a critical component of the project development process, as it ensures that community concerns are addressed and that the benefits of the proposed infrastructure improvements are effectively communicated. AEP is actively working with residents and local officials to provide detailed information about the projects, listen to feedback, and incorporate necessary considerations into the final implementation plans. Transparent communication and collaboration will be essential to minimizing disruptions and maximizing the benefits of these transmission system enhancements.
The selection of AEP and its affiliates for these major projects highlights the company’s extensive expertise in transmission system development. With decades of experience operating one of the largest electric transmission networks in North America, AEP is well-positioned to execute these projects efficiently while maintaining a strong commitment to reliability, innovation, and sustainability.
PJM Interconnection, the regional transmission organization overseeing this initiative, is responsible for coordinating the flow of wholesale electricity across a vast 13-state region, including the District of Columbia. As an independent system operator, PJM ensures that electricity demand and supply are balanced efficiently while maintaining grid stability. The projects approved through the RTEP process align with PJM’s broader strategy to reinforce the power grid, accommodate future energy needs, and integrate renewable energy sources where applicable.
The ongoing transformation of the energy sector underscores the necessity of forward-looking investments in transmission infrastructure. As electricity consumption trends evolve and new technologies emerge, maintaining a robust and adaptable transmission network becomes increasingly critical. Investments like the $1.7 billion allocation by AEP and its partners contribute to the long-term resilience of the power grid, support economic growth, and help ensure that communities continue to receive reliable and affordable electricity.
In addition to enhancing reliability, these transmission projects are expected to provide economic benefits to the states and communities involved. Infrastructure development initiatives of this scale generate employment opportunities, stimulate local economies, and create business prospects for various industries. The construction and maintenance of new transmission lines and substations will require skilled labor, engineering expertise, and supply chain coordination, further driving economic activity in the region.
AEP and Transource Energy remain focused on executing these projects in alignment with industry best practices, regulatory requirements, and community interests. The successful completion of these initiatives will mark a significant milestone in the effort to modernize the nation’s power infrastructure and address the increasing energy demands of the 21st century.
As the energy landscape continues to evolve, strategic investments in transmission infrastructure will play a pivotal role in shaping the future of electricity distribution. By proactively addressing emerging challenges and capitalizing on opportunities for modernization, AEP and its affiliates are contributing to a more resilient and efficient power grid that will serve the needs of consumers and businesses for years to come. The $1.7 billion investment is a testament to the company’s dedication to providing high-quality, reliable electricity while supporting economic and technological advancement in the PJM region.
