A variable frequency transformer (VFT) is being installed at AEP's Laredo substation to exchange up to 100 MW of power between the asynchronous power grids of ERCOT (Texas) and CFE (Mexico). The VFT functions similarly to a back-to-back HVDC converter. It uses a rotary transformer with rotor and stator windings to control power flow through rotational adjustment. Additional control features for the Laredo VFT include tie flow regulation, power runback, reactive power control, and black start capability. The document describes the VFT application and provides simulation results of its performance during grid disturbances.