Committed to long-term ownership and acquisition of transmission assets, BHE U.S. Transmission builds upon the significant operational and ownership experience gained by Berkshire Hathaway Energy through its businesses' ownership of existing electric transmission systems. BHE U.S. Transmission draws upon this experience to develop cost-effective, reliable transmission solutions for wholesale customers.
BHE U.S. Transmission's delivery team has developed approximately $1.6 billion of transmission projects at voltages of 345 kilovolts and higher and has extensive experience in traditional utility and stand-alone transmission project development.
Electric Transmission Texas has developed and constructed more than $1.5 billion of transmission projects within the Electric Reliability Council of Texas, Inc. as part of that state's Competitive Renewable Energy Zone plan. Electric Transmission Texas was formed in 2007 and is a joint venture between subsidiaries of American Electric Power Company and BHE U.S. Transmission. As of year-end 2014, net property plant and equipment was $2.4 billion compared to $2.2billion in 2013, $1.8 billion in 2012, $1.1 billion in 2011, and $530 million in 2010. At year-end 2014, Electric Transmission Texas' transmission system included more than 1,000 miles of 345-kilovot transmission and 30 substations.
In 2013, BHE U.S. Transmission submitted a joint proposal with Pacific Gas and Electric Company into the California ISO's competitive transmission process to develop, construct and own the Central Valley Power Connect transmission project in California. This will be a double-circuit 230-kilovolt transmission line and will extend approximately 60 miles from the Gates substation in Fresno County to the Gregg substation in Madera County. The project was awarded in November 2013 and has a projected in-service date of April 2020, approximately two years earlier than required by the California ISO.
BHE U.S. Transmission continues to evaluate development opportunities in evolving competitive markets either through joint ventures or on a stand-alone basis.
In 2014, BHE U.S. Transmission formed TransCanyon LLC, a joint venture with Bright Canyon Energy, a newly formed subsidiary of Pinnacle West Capital Corporation.
TransCanyon LLC's purpose is to identify, develop, own and construct electric transmission projects located in the 11 western states comprising the Western Electricity Coordinating Council footprint.
BHE U.S. Transmission indirectly owns a 25% interest in Prairie Wind Transmission, LLC, a joint venture with AEP and Westar Energy, Inc., to build, own and operate a 108-mile, 345 kV transmission project in Kansas. Construction began in 2012 and the necessary approvals from the FERC have been received, including a return on equity, inclusive of incentives, of 12.8% and a debt to equity capital structure of 50:50. The project is expected to cost $158.1 million and was fully placed in-service in November 2014. In 2015, BHE U.S. Transmission formed multiple joint venture entities with a subsidiary of Westar Energy, Inc. These companies identify, develop, own and construct electric transmission projects located in the Southwest Power Pool and Midcontinent Independent System Operator footprints.
BHE U.S. Transmission has partnered with major entities to own and operate assets in the western U.S. and is exploring opportunities to expand.