Electric companies to create transmission company Alliance Transco

Several electric companies filed with the US Federal Energy Regulatory Commission to create a for-profit, separately chartered transmission company named Alliance Transco, according to a Form 8-K filed with the Securities and Exchange Commission. As reported, National Grid USA will be the managing member of Alliance Transco.
As part of the deal, Commonwealth Edison issued a non-binding declaration of intent to divest transmission facilities with a book value of more than $ 1 bn to Alliance Transco, according to the filing. The firms estimate Alliance Transco will begin operations Dec. 15.

Previously, FERC had required Alliance Transco to file a business plan detailing its plans for achieving independence. The firms involved in Alliance Transco include Ameren; American Electric Power; Commonwealth Edison, a unit of Exelon; Consumers Energy/Michigan Electric Transmission; Dayton Power & Light; Detroit Edison/International Transmission; Dominion Virginia Power; FirstEnergy; Illinois Power; and Northern Indiana Public Service, a subsidiary of NiSource. The companies operate in 11 states, stretching from Missouri to Virginia, with approximately 57,100 miles of transmission lines, serving about 41 mm customers.

National Grid USA is a wholly owned subsidiary of National Grid Group involved in managing electricity delivery systems and developing telecommunications networks.