American Electric Power has signed two memorandums of understanding (MoU) with the Tennessee Valley Authority (TVA) for the construction of extra-high voltage transmission projects in Tennessee, Virginia and Kentucky in the US.

AEP and TVA will identify prospective transmission projects along the interface of the PJM Interconnection (PJM) and TVA transmission systems, and then negotiate the joint development agreements, according to the terms of the first MoU.

Under the second MoU with TVA through Pioneer Transmission, AEP will build 55 miles of 765kV extra-high voltage transmission connecting AEP’s Rockport Station of Indiana, with TVA’s Paradise Fossil Plant in Kentucky.

Pioneer Transmission is a joint venture between AEP and Duke Energy.

The $275m project also includes the construction of a new 765kV substation at Paradise Fossil Plant.