CHARLOTTE, N.C., April 13, 2011 /PRNewswire/ -- Duke Energy (NYSE: DUK) and American Transmission Co. announced the creation of Duke-American Transmission Co., a joint venture that will build, own and operate new electric transmission infrastructure in North America.
The companies believe Duke-American Transmission Co. (DATC) is well-positioned to help address increasing demand for affordable, reliable transmission capacity in the United States and Canada. DATC has begun identifying opportunities to build, own and operate new transmission projects that meet potential customers' capacity and voltage requirements.
DATC will own all of the transmission assets it builds and operates. Equity ownership of DATC will be split equally between Duke Energy and ATC.
The joint venture will operate as a transmission utility. As a result, it will be subject to the rules and regulations of the Federal Energy Regulatory Commission, MISO, PJM and various other independent system (grid) operators, as well as any states in which DATC develops projects. Per the structure of their new joint venture, Duke Energy and ATC may continue to develop transmission projects independently.
"Thoughtful, well-designed transmission projects afford customers, regulators and other key stakeholders superior flexibility as they determine which energy resources can help meet demand for electricity in the decades to come," said Duke Energy Commercial Businesses Senior Vice President Phil Grigsby. "Duke Energy and ATC share the belief that sound transmission infrastructure can serve as a springboard for next-generation energy technologies."
"This joint venture is an important step in advancing ATC's strategy to grow outside our current service area," said John Flynn, ATC vice president of Strategic Planning and Business Development. "We have been very successful in planning, permitting and building transmission in the Midwest. Through our partnership with Duke Energy, we will take our expertise to other parts of North America to develop transmission solutions that not only deliver reliable electricity, but also economic and public policy benefits."
About Duke Energy
Duke Energy is one of the largest electric power holding companies in the United States. Its regulated utility operations serve approximately 4 million customers located in five states in the Southeast and Midwest, representing a population of approximately 12 million people. Its commercial power and international business segments own and operate diverse power generation assets in North America and Latin America, including a growing portfolio of renewable energy assets and transmission projects in the United States.
Headquartered in Charlotte, N.C., Duke Energy is a Fortune 500 company traded on the New York Stock Exchange under the symbol DUK. More information about the company is available on the Internet at: www.duke-energy.com.
About American Transmission Co.
ATC is the nation's first multi-state transmission-only utility. Since its formation in 2001, ATC has become a national leader in the development and construction of transmission infrastructure having invested $2.5 billion in building nearly 2,000 miles of transmission lines over the past 10 years in a four state area: Wisconsin, Michigan, Minnesota and Illinois. ATC's expertise in transmission planning, public outreach, construction, environmental practices and customer service has resulted in approval of every project proposal it has filed since its formation. ATC owns and operates 9,440 miles of transmission lines and 515 substations. Visit ATC at: www.atcllc.com.