About Our Business

AEP Transmission Holding Company

AEP Transmission Holding Company (AEPTHCo) is a holding company for all AEP Transmission companies (Transcos) and joint ventures with other utilities. The transcos own and operate transmission assets that are physically connected to AEP’s existing system. They are geographically located to align with our utility operating companies and are focused on:

transmission tower photo
  • Local reliability improvements such as upgrades, and rebuilding or replacing existing, aging infrastructure;
  • Construction of new facilities to support customer needs, generation connections, new transmission service directed by regional transmission operators (RTO), and new facilities needed to support reliability; and
  • Projects assigned as a result of RTO planning initiatives to address regional reliability, reduce congestion and integrate supply-side resources (primarily renewables) and retirements of coal units.

The transcos rates are regulated by the Federal Energy Regulatory Commission (FERC). The transcos are independent of, but overlay, the service territories of AEP’s regulated utility companies. They can separately raise capital and are able to build new transmission without affecting the balance sheet or credit ratings of the operating companies.

AEP Indiana Michigan Transmission Company, AEP Ohio Transmission Company, AEP Oklahoma Transmission Company, AEP West Virginia Transmission Company, and AEP Kentucky Transmission Company are operational. These companies currently have transmission assets that are in service or under construction. The Appalachian Power Transmission Company has received conditional approval from the Virginia State Corporation Commission, subject to project-by-project review and approval. Applications for regulatory approvals for AEP Southwestern Transmission Company (SW Transco) are pending in Arkansas and Louisiana.

Electric Transmission Texas (ETT) is a joint venture between subsidiaries of AEP and MidAmerican Energy Holdings Company. ETT will have more than $3 billion in investments within the Electric Reliability Council of Texas (ERCOT) over the next decade. ETT operates in ERCOT.

Transource, a joint venture between AEP and Great Plains Energy, develops and invests in new transmission inside and outside of AEP’s service territory. It operates primarily in the PJM Interconnection, Southwest Power Pool and Midcontinent Independent System Operator (MISO). FERC Order 1000 created new opportunities for competitive transmission investment by giving incumbent and non-incumbent transmission developers similar cost-recovery mechanisms for regional and interregional projects. Click here for updates on joint venture projects.

Learn more about AEP’s current regulatory activity

Our Strategy for Growth

AEP's strategy for growth is to invest capital in our regulated companies. Our investments in transmission and distribution improve reliability for customers and operational efficiencies of the grid, and provide a pathway to market for renewable energy.

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