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Agreement Made for Arizona Transmission Projects

Jan. 31, 2017
Arizona Electric Power Cooperative and ATC Development Co. have entered into a joint operating agreement

Arizona Electric Power Cooperative and ATC Development Co., a development branch of Wisconsin-based American Transmission Co. (ATC), have entered into a joint operating agreement to develop needed transmission projects in Arizona and the southwestern United States. The unique partnership is embodied in a new transmission company under the banner of ATC Southwest.

ATC Southwest will benefit electric cooperative members and electric consumers in the Southwest by developing options to help address the demand for an affordable, reliable transmission system. 

“Arizona and the Southwest are growing, and we’re already seeing increased demand for power that can only be met if we’re willing to step up and develop the transmission projects that will meet that demand over the next two decades and beyond,” said Patrick Ledger, AEPCO chief executive officer.

Both companies bring complementary strengths and experience to this mutually beneficial joint venture. AEPCO, a not-for-profit, member-owned generation and transmission cooperative based in Benson, Arizona, has more than five decades of engineering, constructing, maintaining and operating generation and transmission systems in Arizona. AEPCO’s core business is providing for the low-cost energy needs of rural members and other customers. Additionally, AEPCO has many established relationships with energy providers throughout the southwestern United States that can facilitate future transmission development.

ATC started operations in 2001 as the nation’s first multi-state, transmission-only utility. It provides transmission service to 26 utilities, including 22 cooperative and municipal utilities. ATC is an established and premier leader in transmission development having invested more than $4.1 billion to improve the adequacy and reliability of the transmission infrastructure in the Upper Midwest. ATC’s cost controls, purchasing and benchmarking strategies result in construction cost estimate accuracy that consistently beats the industry average. ATC Development Co. plans to leverage these strengths through the ATC Southwest partnership with AEPCO.

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