Utility officials say 765 kV lines are regional reliability projects; who pays depends on ISO allocations

At the Butler meeting, Indiana Michigan Power explained the proposed 765 kilovolt lines were identified by the regional grid operator as cost‑effective solutions to long‑term congestion and reliability, not to deliver power to a single local customer.

"MISO looks at the system much like you would look at highways," an I&M representative said, describing regional studies that identify where higher‑capacity lines are needed. The company added that because it already owns certain 765 kV substations it had a right of first refusal to build the connecting lines.

Participants asked whether local customers would pay for the project. I&M explained that allocation of costs depends on whether the project falls under MISO or PJM rates. "Anybody that's an AEP customer, you'll see a line item on your bill that says PJM," the representative said; for MISO customers, charges are allocated by that ISO. The utility said local AEP customers likely would not bear the MISO portion of costs for projects in MISO territory, but final allocation depends on ISO rules.

Why it matters: Understanding who ultimately pays for high‑voltage transmission helps local governments and residents evaluate long‑term rate and taxation effects; it also frames how much direct local benefit a project delivers versus system‑wide reliability.