American Electric Power to Invest $1.7 Billion in Transmission Upgrades Across PJM Region

American Electric Power to Undertake Major Transmission Investments

In a significant move to bolster energy reliability and support growing demand, American Electric Power (AEP), alongside its transmission affiliate Transource Energy, is set to invest approximately $1.7 billion for upgrading transmission systems across the PJM region. This investment aims to enhance power reliability in key states including Indiana, Ohio, Virginia, Maryland, and West Virginia.

Addressing Energy Demand

With energy demand on the rise—an unprecedented situation for the nation—these transmission upgrades are crucial. Bill Fehrman, AEP's President and CEO, emphasized the need for a reliable infrastructure to support economic growth and meet customer needs. He noted, "Energy demand is growing at a pace our nation has not seen in decades. Building or upgrading our infrastructure is essential to powering economic development opportunities in the region."

The projects have been selected by the PJM Board under the Regional Transmission Expansion Plan (RTEP), which collects proposals from transmission developers to identify optimal solutions to system needs. These enhancements are expected to be operational by 2029.

Specifics of the Investment

Of the total investment, approximately $1.1 billion will be mobilized through Transource Energy as part of a collaborative venture with Dominion Energy and FirstEnergy Transmission, LLC. This alliance, known as the Valley Link Transmission Company, will lead the charge on projects including the development of two critical 765 kilovolt transmission lines spanning West Virginia, Virginia, and Maryland.

The remaining $600 million is earmarked for projects related to AEP's own transmission companies and operations in Indiana, Ohio, and Virginia. As the initiatives move forward, AEP is committed to fostering engagement with local communities, governments, and stakeholders to ensure the benefits of these projects are well understood.

Engagement and Benefits

The approach to stakeholder engagement is essential, according to AEP. They are determined to work collaboratively with residents and local stakeholders at every phase of the project to clarify the projects' advantages to the community and gather valuable input. This ensures transparency as they address concerns and promote awareness about the industry's developments.

About AEP

American Electric Power, headquartered in Columbus, Ohio, is noted for having the largest electric transmission system in the United States, spanning 40,000 miles, and maintains an extensive distribution network. The company serves around 5.6 million customers across 11 states, with a collection of 29,000 megawatts in electricity generation capacity. AEP is not just focusing on current energy needs but is also investing $54 billion from 2025 to 2029 to enhance overall service and meet anticipated future energy demands.

In summary, AEP's substantial investment of $1.7 billion not only aims to improve system reliability but also represents a key initiative to drive economic growth and energy stability in the PJM region. By strengthening their transmission infrastructure, AEP is making strides to ensure that they can meet the rising energy demands of customers across a broad geographical area while maintaining affordability and reliability in service delivery.