We created XEST to focus on the development and ownership of transmission facilities in the Southwest Power Pool (SPP) region, primarily through participation in the competitive solicitation process. XEST, as a subsidiary of Xcel Energy, will leverage the full strength of our experience and capabilities to design, finance, permit, construct, own, operate and maintain transmission lines.
Xcel Energy is a proven, best value transmission provider with experience in developing transmission projects in numerous jurisdictions at a competitive price. With more than 20,000 miles of existing transmission, more than 1,200 substations across 10 states, and many projects under construction and development we have clearly demonstrated we have the internal resources, experience and capability to develop, implement, construct, own and operate transmission line projects.
Our extensive track record of working with land owners and local, state and federal agencies for permitting and easements speaks for itself, and our proven public outreach and stakeholder engagement strategies are second-to-none. Through our roughly $1 billion purchases in materials and services annually, we have developed long-term agreements with key suppliers and contractors in the industry and we use these agreements to maintain low project costs.
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