The Midcontinent Independent System Operator on Tuesday selected a joint venture of American Electric Power and Berkshire Hathaway Energy subsidiaries to build a $1.2 billion, 765-kV transmission project in Wisconsin.
The Transource and BHE Transmission project is slated to run about 190 miles. It must be operating by June 1, 2034, according to MISO’s report on the competitive process it used to select the winning bidders.
“Transource demonstrated the most 765 kV capabilities of all developers and it will partner with a strong contractor to operate and maintain the project after it is complete,” MISO said in the report.
Although Transource’s estimated revenue requirement wasn’t the lowest among the five bidders, the company showed “reasonable cost estimates and offered reasonable cost containment,” MISO said.
AEP owns 86.5% of Transource and Evergy owns 13.5%.
MISO also tapped Chicago-based Viridon Midcontinent to build a roughly $350 million, 345-kV project in southeast Wisconsin. The Viridon project is set to run about 105 miles and is required to be online by June 1, 2033. Viridon is owned by Blackstone Energy Transition Partners, one of Blackstone’s private equity funds.
MISO selected Viridon out of four bids despite concerns that parts of the project may be underpriced, according to the grid operator’s report on the solicitation process.
“Although MISO is concerned that some components of its estimated capital cost may be understated, Viridon offered cost containment strong enough to likely ensure the lowest cost to the ratepayer even if its estimated costs rose significantly,” said MISO, noting the company has an executed agreement with a general contractor for the project.
The Viridon and Transource projects require regulatory and other permitting approvals.
The projects are part of MISO’s $22 billion Long-Range Transmission Plan Tranche 2.1 portfolio that was approved by the grid operator’s board in December 2024. In part, the portfolio of projects will create a 765-kV transmission backbone across MISO’s central and northern regions.
Seven of the projects are open to competitive solicitations. MISO in July selected Republic Transmission to build a roughly $78 million, 345-kV line that is set to run about 26 miles between northern Kentucky and Indiana.
