Claremore Daily Progress

Business

September 11, 2012

Clean Line receives FERC approval

HOUSTON —  

Plains and Eastern Clean Line (Clean Line) has obtained a key regulatory approval from the Federal Energy Regulatory Commission (FERC) to begin negotiating transmission service agreements with potential customers of the transmission line project.

Claremore’s Pelco Structural has an agreement with Plains & Eastern Clean Line to manufacture tubular steel structures for the project.  

The FERC order was issued in response to the application filed by Clean Line in June 2012. Receiving this authority will allow Clean Line to negotiate rates with potential customers of the project, likely utilities and other load serving entities or clean energy generators. FERC granted Clean Line the authority to subscribe up to 75 percent of the line’s transmission capacity with anchor tenants. The remainder of the transmission capacity will be offered through an open season process under the same terms and conditions agreed to by anchor customers. 

The Plains & Eastern Clean Line is an approximately 750-mile overhead high voltage direct current (HVDC) transmission line that will connect clean energy from western Oklahoma, northern Texas, and  southwestern Kansas with utilities and customers in Tennessee, Arkansas, and other markets in the Mid-South and the Southeast. 

The project will deliver approximately 3,500 megawatts, providing enough energy to power the equivalent of over 1 million homes.  

“This approval from FERC is a great step towards developing Oklahoma’s low-cost clean energy resources,” said Oklahoma Energy Secretary Michael Ming. “The Plains & Eastern Clean Line will create jobs, while enabling billions of dollars of investments in Oklahoma’s clean energy industry.” 

In its application, Clean Line addressed the following standards: just and reasonable rates; the potential for undue discrimination; the potential for undue preference, including affiliate preference; and regional reliability and operational efficiency requirements. Clean Line also described why granting its request, as detailed in the application, will be in the public interest.  

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