8-KMaterial Agreements

Duke Energy CORP 8-K Report, Material Agreement (Aug 13, 2008)

Filed August 13, 2008For Securities:DUKDUKBDUK-PA

Summary

Duke Energy Corporation (DUK) has entered into a material definitive agreement to form a joint venture with American Electric Power Company, Inc. (AEP). This partnership aims to construct and operate a significant new transmission infrastructure project, involving approximately 240 miles of extra-high-voltage 765-kilovolt transmission lines and associated facilities in Indiana. Both Duke Energy and AEP will hold equal ownership stakes in this joint venture and will share project costs evenly.

Key Highlights

  • 1Duke Energy and American Electric Power (AEP) formed a joint venture on August 8, 2008.
  • 2The joint venture will build and operate 240 miles of extra-high-voltage 765-kilovolt transmission lines in Indiana.
  • 3The project aims to connect Duke Energy's Greentown sub-station to AEP's Rockport generating station.
  • 4The estimated cost for this transmission line project is approximately $1 billion.
  • 5Duke Energy and AEP will have equal ownership and share costs equally in the joint venture.
  • 6The project requires approvals from PJM Interconnection, Midwest ISO, the Federal Energy Regulatory Commission (FERC), and a filing in Indiana.
  • 7The earliest expected completion date for the transmission lines is between 2014 and 2015.

Frequently Asked Questions

The main purpose is to construct and operate approximately 240 miles of new extra-high-voltage 765-kilovolt transmission lines and related facilities in Indiana, aimed at enhancing regional transmission capacity.

The estimated cost for the project is approximately $1 billion. The final costs may vary depending on factors such as the final routing of the line, equipment, and commodity prices.

The earliest expected completion date for the transmission line project is 2014 or 2015.

The joint venture will need to submit the project for consideration in the transmission expansion plans of PJM Interconnection and Midwest ISO, seek rate approval from the Federal Energy Regulatory Commission (FERC), and make a filing in Indiana to operate as a transmission utility.