Virginia-based Trans-Elect and the Navajo Nation’s power authority have signed an agreement to pursue the completion of the development and permitting of a 470-mile, 500 kV high voltage transmission line that will originate in the Four Corners area of New Mexico, cut across the Navajo Nation and terminate in near Las Vegas.

Trans Elect’s New Transmission Development Co. and Dine Power Authority have been contacting and working with generators, utilities, regulators and regional independent system operators to define the customer and revenue sources for the Navajo Transmission Project (NTP). Dine Power Authority is an enterprise of the Navajo Nation empowered to initiate electric power infrastructure development on the Navajo Nation.

Under the agreement, Trans-Elect and Dine Power Authority will complete a thorough due diligence on all aspects of the project and begin the process of identifying new sources of power, primarily coal-fired, that would make use of the new capacity. It is anticipated that all permits and right-of-ways could be completed, and construction initiated, in twelve to sixteen months, once transmission line customers have made the necessary and appropriate commitments.

The project, the largest transmission infrastructure project currently underway in the U.S., is key to meeting increasing electric demand in the fast-growing southwest power markets, according to Bob Mitchell, president of Trans-Elect’s New Transmission Development.

“The project is very important to the continuing growth of the southwest markets as it increases system reliability and provides access to low-cost coal generation to the fast growing Arizona, Nevada and Southern California markets,” Mitchell said. “This in turn offers the region and power suppliers a needed hedge against the huge growth in natural gas-fired generation in the Southwest.”

He said that despite the hesitancy of most companies to make investments in transmission assets out of concern for the current health of the U.S. power markets, this is the time to push forward with key infrastructure projects such as NTP that have a long development lead time. “Trans-Elect believes the robust growth in the Southwest markets and Southern California will continue, and that the time is now for strengthening the transmission system to meet that growth,” he added.

Mitchell also said that Trans-Elect’s potential investment in NTP underscored its belief that FERC is on track with its plan to create a competitive transmission market in the U.S., capable of attracting the kind of investment dollars needed for NTP and other capital intensive infrastructure projects.

“This project fits with Trans-Elect’s mission to be the first truly national transmission company,” Mitchell said. “It validates FERC’s view that with a sound transmission market structure in place, investment dollars will flow to this critically important sector.”

Trans-Elect now owns or serves as general partner for assets totaling nearly $1.1 billion, which represents 14,400 miles of transmission lines in the U.S. and Canada.

FERC has identified $12 billion in improvements that are immediately needed to relieve the nation’s most serious congestion points.

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