
Last night Danville City Council approved a resolution authorizing the City Manager to Enter into a Contract or Contracts for the Sale of Municipal-Owned Transmission Assets to AMP Transmission, LLC, a Subsidiary of American Municipal Power.
Danville currently has four electric delivery points with American Electric Power (AEP) that distribute electricity to various City substations across the electric service territory. City staff recommended selling the City’s portion of the four delivery points to American Municipal Power Transmission (AMPT) LLC to increase reliability and lower future capital improvement expenditures.
American Municipal Power Transmission will look to rebuild, at their cost, the Riverside substation to Brantley transmission line, allowing for additional reliability between the City’s electric system and AEP’s transmission system. This will benefit all electric customers in Southside Virginia.
This project will also allow for future development along the Dan River as the new transmission line will be relocated away from the north side of the river. AMPT would also look to purchase our existing assets at a total net book value of approximately $10,000,000, and replace obsolete transformers and equipment at their cost. American Municipal Power will also be able to assist the City with pursuing future economic development interconnections with AEP and PJM for new large customers that require large amounts of electricity and bring jobs to the region.