AEP studies transmission lines for renewable power

LOS ANGELES, Dec 2 (Reuters) - American Electric Power (AEP.N) announced on Tuesday it is studying the possibility of building a multi-state transmission project in the U.S. Upper Midwest to help develop wind power generation.

AEP wants to hook up existing 765-kilovolt (kV) lines in the Midwest with proposed 765-kV lines that would bring wind power from North Dakota and later possibly from South Dakota, Iowa and Minnesota.

The proposed project is in "conceptual stage" and would be built in stages, if approved and financed.

The transmission project "will likely require more than 1,000 miles (1,610 km) of new extra-high voltage transmission lines at a cost of between $5 billion and $10 billion," AEP said.

The Midwest Independent System Operator, which manages transmission lines in the region, must approve the project.

The new lines would connect 2,000 megawatts of wind power in Hartland Wind Farm project in North Dakota, near the western terminus of the proposed lines, AEP said.

Hartland and AEP will work together on the proposed lines, AEP said.

"The Dakotas, Minnesota and Iowa have some of the very best wind generation resources in the United States, but the wind potential in this region cannot be developed unless we build a very efficient transmission superhighway to bring this clean, renewable generation to population and electricity load centers," said Michael G. Morris, AEP chairman, president and CEO.

Hartland Wind Farm is a partnership between Montgomery Power Partners of Houston and Denali Energy of Baxter, Minnesota.

Hartland plans a $4 billion project in northwestern North Dakota. Construction is to start in 2010. It is planned to be built in stages. (Reporting by Bernie Woodall; Editing by Marguerita Choy)