Dive Brief:
- Pinnacle West Capitol Corp. has formed a subsidiary to develop large transmission projects in the western United States, and intends to bid on the Delaney-Colorado River transmission project recently approved by the California ISO.
- The new subsidiary, Bright Canyon Energy Corp., has formed a 50-50 joint venture with Berkshire Hathaway subsidiary MidAmerican Transmission. The two companies will partner on the transmission line bid.
- Cal-ISO on Aug. 19 said it expanded the 2013-2014 transmission planning process competitive solicitation bid window to receive proposals to finance, construct and own the Delaney-Colorado River (DCR) line. Applications are due Nov. 19.
Dive Insight:
The Cal-ISO Board of Governors approved the DCR project at its meeting in mid-July, finding an economic need for the 130-mile 500 kV transmission line. The ISO estimated the project's cost at $300 million, but noted that figure "does not include facilities necessary at the Delaney and Colorado River substations that will be installed by the owners of those substations. ... This cost estimate does include the requisite transmission line series compensation."
Speaking to investors and analysts during Pinnacle West's earnings call, Chairman and CEO Don Brandt said he expected that the project "will take three years to permit and two years to construct. So at this point, we expect the line would be in service by 2020."
"Given the competitive process and this timeframe, we do not currently reflect any CapEx in our forecast for this line," he added.
