TransCanyon LLC’s Cross-Tie Project Reaches Major Milestone

Rhea-AI Summary

TransCanyon 's Cross-Tie Project has reached a significant milestone with the release of the Final Environmental Impact Statement (FEIS) by the Bureau of Land Management and U.S. Forest Service. The Cross-Tie Project involves constructing a 214-mile, 500-kV high-voltage transmission line connecting Utah's Clover Substation to Nevada's Robinson Summit Substation, with a capacity of 1,500 megawatts.

The FEIS, released on September 20, 2024, analyzes potential impacts and outlines mitigation measures. The project aims to enhance grid reliability, increase transmission capacity, and expand access to renewable energy across western energy markets. It will provide subscribers with a direct link to the CAISO energy market once the SWIP-North Transmission Project is completed in 2027. A final Record of Decision is expected in winter 2024.

Positive

• Project reaches significant milestone with FEIS release
• 1,500 megawatt capacity transmission line to be constructed
• Enhances grid reliability and resilience
• Expands access to renewable energy resources
• Provides direct link to CAISO energy market

Negative

• None.

Insights

Energy Infrastructure Analyst

The Cross-Tie Project's FEIS release marks a important advancement in western U.S. energy infrastructure. This 214-mile, 500-kV transmission line with a 1,500 MW capacity will significantly enhance grid resilience and renewable energy distribution. The project's strategic connection between Utah and Nevada substations positions it as a critical pathway in the western grid. The expected completion of the SWIP-North Transmission Project in 2027 will create a direct link to the CAISO energy market, potentially impacting energy prices and accessibility. For investors, this represents a long-term infrastructure play with implications for regional energy dynamics, renewable energy integration and potential economic growth in the affected areas. The project's progress through regulatory milestones suggests reduced development risk, though final approval is still pending the Record of Decision expected in winter 2024.

Environmental Policy Expert

The release of the Final Environmental Impact Statement (FEIS) for the Cross-Tie Project signifies a critical juncture in the regulatory process. This document, prepared by federal agencies, meticulously assesses potential environmental impacts and outlines mitigation strategies. The collaboration between TransCanyon and agencies like the BLM and Forest Service demonstrates a commitment to responsible development. Key aspects to watch include:

• Proposed alternatives in the FEIS, which could affect project costs and timeline
• Mitigation measures that may influence operational expenses
• Potential legal challenges from environmental groups, which could delay implementation

Investors should note that while the FEIS is a positive step, the final Record of Decision remains crucial. The project's alignment with renewable energy goals may provide a favorable regulatory environment, but environmental compliance costs and potential delays should be factored into any investment considerations.

SALT LAKE CITY--(BUSINESS WIRE)-- TransCanyon LLC’s Cross-Tie Project has reached a significant milestone with the recent announcement from the Bureau of Land Management (BLM) and United States Department of Agriculture-Forest Service (Forest Service) regarding the availability of the Final Environmental Impact Statement (FEIS). This document marks a key step in development of the Cross-Tie 500-kV Transmission Project, a major infrastructure initiative aimed at enhancing the region’s energy transmission capabilities.

“We are excited to announce the next stage for the proposed Cross-Tie 500-kV Transmission Project,” said BLM West Desert District Manager Michael Gates. “This transmission line represents a critical pathway in the western grid, helping to improve resilience and reliability while boosting the delivery of renewable energy across western energy markets.”

The Cross-Tie Project consists of approximately 214 miles of high-voltage transmission line, with a capacity of 1,500 megawatts and 500-kV high-voltage alternating current (HVAC) overhead transmission. The line will connect the Clover Substation in central Utah to the Robinson Summit Substation in east-central Nevada.

The FEIS, which was released Sept. 20, 2024, provides a detailed analysis of the project’s potential impacts, as well as proposed alternatives. The FEIS also outlines key mitigation and environmental protection measures that TransCanyon has committed to following throughout construction, operations and ongoing maintenance.

“We appreciate the collaboration and expertise provided by the BLM Fillmore Field Office and cooperating agencies, including the U.S. Forest Service,” said Roger Yensen, Principal Project Manager for TransCanyon. “Together, we have worked to ensure this project is developed responsibly and look forward to the final Record of Decision expected in winter 2024.”

The Cross-Tie Project aims to provide significant benefits to the western energy market, including providing subscribers a direct link to the CAISO energy market at Robinson Summit once the SWIP-North Transmission Project comes in-service in 2027. As the project moves forward, Cross-Tie will continue to increase transmission capacity, enhance grid reliability and resilience, provide relief from congestion on existing transmission lines, and expand access to renewable energy resources across the region. Additional information about the project may be found at TransCanyon - Projects - Cross-Tie and EplanningUi (blm.gov).

About TransCanyon

TransCanyon is an independent developer of electric transmission infrastructure for the western United States. Formed in 2014, the company is a joint venture between a subsidiary of Pinnacle West Capital Corporation (NYSE: PNW) and Berkshire Hathaway Energy’s subsidiary, BHE U.S. Transmission.

TransCanyon is uniquely situated in that it brings together the broad and deep capabilities of its parent companies – Pinnacle West Capital and Berkshire Hathaway Energy. As a result, TransCanyon benefits from the collective experiences of organizations who together own and operate approximately 41,888 miles of existing transmission infrastructure. In addition to the Cross-Tie Transmission Line, TransCanyon is pursuing other transmission opportunities in the western U.S.

About BHE U.S. Transmission

BHE U.S. Transmission is committed to the 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’s delivery platforms have 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. For more information about BHE U.S. Transmission, visit the company’s website at bhetransmission.com.

About Pinnacle West

Pinnacle West Capital Corp., an energy holding company based in Phoenix, has consolidated assets of more than $26 billion, about 6,500 megawatts of generating capacity and approximately 6,100 employees in Arizona and New Mexico. Through its principal subsidiary, Arizona Public Service, the company provides retail electricity service to approximately 1.4 million Arizona homes and businesses. For more information about Pinnacle West, visit the company’s website at pinnaclewest.com.

View source version on businesswire.com: https://www.businesswire.com/news/home/20241018286164/en/

Alan Bunnell, Pinnacle West

Berkshire Hathaway Energy Media Hotline

Website: transcanyon.com/projects/Cross-Tie-Transmission-Line

Source: TransCanyon LLC

FAQ

What is the Cross-Tie Project's transmission line capacity and voltage?

The Cross-Tie Project involves a 500-kV high-voltage alternating current (HVAC) overhead transmission line with a capacity of 1,500 megawatts.

When was the Final Environmental Impact Statement (FEIS) for the Cross-Tie Project released?

The Final Environmental Impact Statement (FEIS) for the Cross-Tie Project was released on September 20, 2024.

How long is the proposed Cross-Tie transmission line?

The proposed Cross-Tie transmission line is approximately 214 miles long.

Which substations will the Cross-Tie Project connect?

The Cross-Tie Project will connect the Clover Substation in central Utah to the Robinson Summit Substation in east-central Nevada.

When is the final Record of Decision for the Cross-Tie Project expected?

The final Record of Decision for the Cross-Tie Project is expected in winter 2024.