The venture, Electric Transmission Texas (ETT) has applied for approval to operate as an electric transmission utility in the state. Transmission assets currently under construction by AEP subsidiary Texas Central Co will become part of the ETT portfolio, including a variable frequency transformer that will allow power flow between the US and Mexico.

The companies anticipate in excess of $1 billion in projects could be included in the new company during the next several years within the Electric Reliability Council of Texas (ERCOT) region.

AEP and MidAmerican plan to begin operations in the second half of 2007.