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News
Trans Allegheny Interstate Line (TrAIL), US

Author: walter   [ 2010-01-28 ]

Developer: Allegheny Energy

Project detail and status: The project is being developed by Allegheny's wholly owned subsidiary Trans-Allegheny Interstate Line Company (TrAILCO). This 500 kV transmission line was originally proposed to run 240 miles (386 km) across three states – Pennsylvania, West Virginia and Virginia. However, after facing severe opposition in Pennsylvania, the developers announced a rerouting of the project. Allegheny announced it would abandon the 36-mile (58 km) stretch passing through the state, but would build a "critical" 1.2 mile (about 2 km) stretch and a new substation in Greene County in Pennsylvania. 

The Virginia State Corporation Commission (SCC) and West Virginia's Public Service Commission (PSC) have already approved the segments of the line passing through their respective states. The Pennsylvania Public Utility Commission (PUC) gave its approval for construction of the 1.2-mile (about 2 km) segment in November 2008. 

The TrAIL project also includes construction of three new 138 kV lines in southwestern Pennsylvania, each approximately five miles in length. The project will interconnect to Dominion Virginia Power's substation in Loudon County, Virginia. Dominion will own, construct and operate part of TrAIL from Meadow Brook to Loudoun County. This 500 kV line is 65 miles (105 km) long and is estimated to cost USD243 million. The Virginia SCC approved Dominion's portion of the project in 2008. Dominion has begun construction on the project passing through in Culpeper and Fauquier areas of Virginia. 

TrAILCO’s portion of the project is estimated to cost USD820 million. In August 2008, TrAILCO closed on a 7-year USD550 million senior secured loan facility, which includes a USD530 million term loan and a USDS20 million revolving facility, both with an initial borrowing rate equal to LIBOR + 1.875 per cent. In July 2008, Federal Energy Regulatory Commission (FERC) approved a return on equity (RoE) of 12.7 per cent for the TrAIL project and 11.7 per cent for other related projects undertaken to support TrAIL. 

Kenny Construction Company has been selected to oversee the construction management of the TrAIL project. The project has a targeted completion date of June 2011.