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Released January 25, 2019 | SUGAR LAND
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Researched by Industrial Info Resources (Sugar Land, Texas)--American Electric Power Company (NYSE:AEP) (AEP) (Columbus, Ohio) is making upgrades and renovations of its transmission and distribution (T&D) systems a top priority for 2019, as the company continues to focus on servicing high-growth areas like Texas' Permian Basin. Industrial Info is tracking about $3.6 billion in active projects involving AEP, more than 75% of which is attributed to T&D projects.
Click on the image at right for a graph detailing the top 10 U.S. states for AEP project investments.
AEP projects capital expenditures for 2019 will total roughly $6.5 billion, much of which will be spent on T&D work for regulated businesses. Although rebuilds and upgrades account for much of AEP's T&D plans, according to Industrial Info's project database, there are several entirely new lines set to begin construction within the next 12 months, including the $52 million Fort Stockton-to-Barstow line in Texas, which will run 52 miles and help to supply energy to operators in the Permian Basin. For more information, see Industrial Info's project report.
"Last year, we experienced the highest number of heating and cooling degree days in 30 years," said Nicholas Akins, chief executive officer of AEP, in a press release. "That favorable weather allowed us to increase our discretionary spending significantly from 2017 levels in areas that will improve service to customers." He added: "Investments in our transmission business remain on track, and continue to support our year-over-year earnings growth."
Also in the coming year, AEP expects to begin construction on a $25 million transmission line in South Bend, Indiana, which will run 2.5 miles between two proposed substations. The new line is part of AEP's Powering Up Greater South Bend Program, a $170 million investment designed to upgrade, replace and modernize aging facilities, and bring additional capacity to northern Indiana, according to AEP's website.
The single largest component of the Powering Up plan is a $98 million transmission line rebuild near Mishawaka, Indiana, that covers 65 miles and will replace wood poles with steel monopoles, as well as update the wiring itself. The new line and the rebuild both are set to begin construction this summer and last about one year. For more information, see Industrial Info's project reports on the new South Bend line and the Mishawaka rebuild.
AEP also has several projects underway to improve electric reliability in West Virginia, a state that is among those most heavily impacted by the nation's reduced reliance on coal-fired power generation. These include the $58 million Cedar Grove-to-Clendenin line rebuild, which covers 18 miles, and the $56 million Fayette County Area Transmission Improvement Project, which covers 29 miles, as well as the addition of one substation and the upgrade of another. For more information, see Industrial Info's reports on the Cedar Grove-to-Clendenin and Fayette County projects.
Also in West Virginia, AEP is planning its $30 million dismantlement and demolition of the Philip Sporn Power Station in New Haven. The now-closed facility once generated 1,108 megawatts (MW) from coal. Although AEP first asked the Public Service Commission to allow it to dispose of the plant in 2015, the kickoff date has been pushed back for years. AEP currently expects to begin the process in the spring of 2020. For more information, see Industrial Info's project report.
Substation projects account for a significant chunk of AEP's T&D spending, including three key projects in the eastern U.S., one of which already is under construction: the $105 million upgrade of the Nagel Substation in Church Hill, Tennessee. AEP plans to expand the existing 500-kilovolt (kV) yard and construct a new, 138-kV Yard, as well as convert the station from gas insulation to air insulation. For more information, see Industrial Info's project report.
Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, six offices in North America and 12 international offices, is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. Industrial Info's quality-assurance philosophy, the Living Forward Reporting Principle, provides up-to-the-minute intelligence on what's happening now, while constantly keeping track of future opportunities. Follow IIR on: Facebook - Twitter - LinkedIn. For more information on our coverage, send inquiries to info@industrialinfo.com or visit us online at http://www.industrialinfo.com/.
Click on the image at right for a graph detailing the top 10 U.S. states for AEP project investments.AEP projects capital expenditures for 2019 will total roughly $6.5 billion, much of which will be spent on T&D work for regulated businesses. Although rebuilds and upgrades account for much of AEP's T&D plans, according to Industrial Info's project database, there are several entirely new lines set to begin construction within the next 12 months, including the $52 million Fort Stockton-to-Barstow line in Texas, which will run 52 miles and help to supply energy to operators in the Permian Basin. For more information, see Industrial Info's project report.
"Last year, we experienced the highest number of heating and cooling degree days in 30 years," said Nicholas Akins, chief executive officer of AEP, in a press release. "That favorable weather allowed us to increase our discretionary spending significantly from 2017 levels in areas that will improve service to customers." He added: "Investments in our transmission business remain on track, and continue to support our year-over-year earnings growth."
Also in the coming year, AEP expects to begin construction on a $25 million transmission line in South Bend, Indiana, which will run 2.5 miles between two proposed substations. The new line is part of AEP's Powering Up Greater South Bend Program, a $170 million investment designed to upgrade, replace and modernize aging facilities, and bring additional capacity to northern Indiana, according to AEP's website.
The single largest component of the Powering Up plan is a $98 million transmission line rebuild near Mishawaka, Indiana, that covers 65 miles and will replace wood poles with steel monopoles, as well as update the wiring itself. The new line and the rebuild both are set to begin construction this summer and last about one year. For more information, see Industrial Info's project reports on the new South Bend line and the Mishawaka rebuild.
AEP also has several projects underway to improve electric reliability in West Virginia, a state that is among those most heavily impacted by the nation's reduced reliance on coal-fired power generation. These include the $58 million Cedar Grove-to-Clendenin line rebuild, which covers 18 miles, and the $56 million Fayette County Area Transmission Improvement Project, which covers 29 miles, as well as the addition of one substation and the upgrade of another. For more information, see Industrial Info's reports on the Cedar Grove-to-Clendenin and Fayette County projects.
Also in West Virginia, AEP is planning its $30 million dismantlement and demolition of the Philip Sporn Power Station in New Haven. The now-closed facility once generated 1,108 megawatts (MW) from coal. Although AEP first asked the Public Service Commission to allow it to dispose of the plant in 2015, the kickoff date has been pushed back for years. AEP currently expects to begin the process in the spring of 2020. For more information, see Industrial Info's project report.
Substation projects account for a significant chunk of AEP's T&D spending, including three key projects in the eastern U.S., one of which already is under construction: the $105 million upgrade of the Nagel Substation in Church Hill, Tennessee. AEP plans to expand the existing 500-kilovolt (kV) yard and construct a new, 138-kV Yard, as well as convert the station from gas insulation to air insulation. For more information, see Industrial Info's project report.
Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, six offices in North America and 12 international offices, is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. Industrial Info's quality-assurance philosophy, the Living Forward Reporting Principle, provides up-to-the-minute intelligence on what's happening now, while constantly keeping track of future opportunities. Follow IIR on: Facebook - Twitter - LinkedIn. For more information on our coverage, send inquiries to info@industrialinfo.com or visit us online at http://www.industrialinfo.com/.
