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Written by John Egan for Industrial Info Resources (Sugar Land, Texas)--Illinois utility regulators last month approved a $150 million plan by Ameren Transmission Company of Illinois (ATXI) (St. Louis, Missouri), a subsidiary of Ameren Corporation (NYSE:AEE) (St. Louis), to build a 46-mile, 345-kilovolt (kV) transmission line in Northwest Illinois. The so-called Spoon River Project will stretch from Galesburg to Peoria. Construction is scheduled to begin in late 2016, and the line is expected to be operating in 2018.

The Spoon River Transmission Project is one of three large transmission projects under development by ATXI. The other two are the Mark Twain Transmission Project, a 100-mile line with total investment value (TIV) of about $225 million, and the Illinois Rivers Transmission Project, a 380-mile, 345-kV project valued at $1.1 billion.

Click to view Ameren Transmission ProjectsClick on the image at right for a map of ATXI's three major transmission projects.

The Midcontinent Independent System Operator (MISO) (Carmel, Indiana), the transmission organization coordinating transmission reliability across 15 Midwestern states and Manitoba, Canada, approved all three projects in 2011 to enhance the reliability of the regional transmission system and to move more wind energy across state lines.

Maureen Borkowski, chairman and president of ATXI, welcomed the September 17 decision by the Illinois Commerce Commission (ICC) (Springfield, Illinois) on the Spoon River project. The decision "is welcome news for Illinois," she said in a statement: "This project will benefit the state's economy, create jobs and provide Illinois electricity customers greater access to lower-cost energy and electricity from renewable sources, such as wind energy. It also will improve transmission system reliability in and around the project area."

Industrial Info is tracking 23 transmission and distribution (T&D) projects under development by ATXI or other units of Ameren, with an aggregate value of about $2.2 billion. Ten of those T&D projects are located in Missouri, with TIV of $1.4 billion. The other 13 projects are located in Illinois, worth about $787 million.

Construction began on the Illinois Rivers Transmission Line in early 2014, following approval by Illinois utility regulators. Illinois Rivers is Ameren's largest-ever transmission project and is scheduled to be operating by mid-2019. The 380-mile project will stretch from Palmyra, Missouri, to Sugar Creek, Indiana. URS Corporation (San Francisco, California), a subsidiary of AECOM Technology Corporation (NYSE:ACM) (Los Angeles, California), is a contractor on the Illinois Rivers line.

The third large transmission line under development by ATXI, the Mark Twain Transmission Project, will run from Palmyra, Missouri, to the Iowa border. The project also includes construction of the new Zachary Substation in Kirksville, Missouri. The Mark Twain project has not yet been approved by the Missouri Public Service Commission (Jefferson City, Missouri). ATXI expects the line to be operating by 2018.

"The Midwest has seen a lot of transmission project activity as developers are trying to bring renewable energy from where it is generated, typically in the Upper Midwest and Plains states, to where it is consumed, typically in markets located east of those states," said Britt Burt, Industrial Info's vice president of research for the global power industry. "Not all projects receive regulatory approval, but developers are doggedly pursuing interstate projects in part because they are eligible for incentive compensation, according to decisions from the Federal Energy Regulatory Commission (FERC) (Washington, D.C.)."

Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, five offices in North America and 10 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.
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