PJM Planning More Power Lines

PJM Interconnection is now soliciting new high voltage transmission projects from developers.  Keryn has dipped into the PJM cesspool, with help from PJM (now RTO) Insider, and has come up with the story on how PJM engineers are hiding the process from land owners in the PJM region, including WV.

If you want to see where the next PATH is coming from, you need to start by reading Keryn’s new post over at StopPATH WV.

Eager and hopeful transmission builders in PJM are now busy with their transmission line routing Etch-a-Sketches, drawing a new transmission line through your back yard, and hoping that their proposal will be anointed Miss Market Efficiency 2013 and take home the big prize.  In mid-August, PJM “began invit­ing com­pet­i­tive pro­pos­als for trans­mis­sion improve­ments to pro­vide relief at its 25 most con­gested locations.”  According to RTO Insider, the deadline to submit new transmission proposals for consideration is September 26.

FERC’s Order No. 1000 removed the historical “right of first refusal” to build new projects from incumbent transmission owners.  Under the prior scheme, when PJM determined that a new project was needed, it was first offered to the incumbent transmission owner in that zone.  If the incumbent declined to build it, then the project was opened to competitive bidding.  But I’m not sure that ever happened.  After all, what greedy transmission owner would ever turn down the chance to make more money with new transmission investments returning double digit interest?  Under the new scheme, when PJM identifies a new transmission building opportunity, a project proposal window is opened and all transmission owners who have been pre-qualified may submit new project proposals that solve the transmission issue.  PJM then descends into its secret underground lair with all the bids and makes a subjective selection of the contest winner.

One thought on “PJM Planning More Power Lines

  1. I am not reading anything about a shift in the quantity demanded. One would think if there is not a shift in the demand, the level of need is greatly lowered. I am beginning to believe the RTO’s recognize the threat from individually owner rooftop solar and believe robust spend on transmission will tie consumers to the current model.

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