The Maryland Public Service Commission last week approved a settlement allowing Transource Energy to move forward with its controversial Independence Energy Connection (IEC) transmission project.
In its order issued June 30, the PSC said Transource can build the 4.5-mile western portion of the 230-kV overhead transmission line from Washington County, Md., to a substation in Franklin County, Pa.
Baltimore Gas and Electric will build the 6.6-mile eastern portion of the project, comprising two segments from substations in Harford County, Md., to a substation across the border in York County, Pa. (Case No. 9471).
Signing the settlement in addition to Transource were the Maryland Power Plant Research Program, the commission’s technical staff, BGE, Harford County and landowner parties, including the group STOP Transource Maryland.
The Harford County segment of the project, which also crosses portions of Baltimore County, was redesigned from the original proposal to avoid greenfield construction through the utilization of BGE’s existing utility infrastructure and rights of way. Transource filed the second configuration for the IEC East project with Maryland and Pennsylvania regulators in October after settling with landowners and state officials opposed to the original route of a nearly 16-mile-long new transmission line. (See Transource Files Reconfigured Tx Project.)
The PSC directed Transource and BGE to minimize all construction activities and additional construction-related costs until the project wins the approval of the Pennsylvania Public Utility Commission and final approval by PJM. It concluded that portions of the proposed transmission line in Maryland will “address existing and future regional congestion issues,” while reducing impacts on the environment, agricultural activities and natural resources.
“The commission finds that this project will provide benefits to Maryland ratepayers, including enhanced reliability of electricity service and greater access to least-cost energy from elsewhere within PJM, while also accommodating future development of renewable technologies such as offshore wind,” PSC Chair Jason Stanek said in a statement.
In 2016, PJM identified the IEC project as a solution to relieve congestion on the AP South interface. Transource filed its initial applications with the Maryland and Pennsylvania commissions in 2017.
The Harford County segment of the project, which also crosses portions of Baltimore County, was redesigned from the original proposal to avoid greenfield construction through the utilization of BGE’s existing utility infrastructure and rights of way. Transource filed the second configuration for the IEC East project with Maryland and Pennsylvania regulators in October after settling with landowners and state officials opposed to the original route of a nearly 16-mile-long new transmission line. (See Transource Files Reconfigured Tx Project.)
PJM’s analysis of the new IEC East configuration determined it will cost $496.2 million and realize $844.8 million in congestion benefits. The analysis ran into protests by PJM stakeholders last year, who said the project did not meet the RTO’s cost-benefit test. (See PJM Analysis of Transource Alternative Challenged.)
Nils Hagen-Frederiksen, press secretary for the Pennsylvania PUC, said the proposed settlement regarding the Pennsylvania portions of the IEC project is pending regulatory approval before the commission. Hagen-Frederiksen said additional evidentiary hearings are scheduled for July 9 and 10 before the PUC administrative law judges, with briefs from all parties due in mid-August and reply briefs due for a yet-to-be determined date.
“At some point, after all the briefs have been filed and the record has been closed, the administrative law judges will review all of the case materials and issue a recommendation for the full commission to consider as part of their final decision, but there is no specific schedule for that,” Hagen-Frederiksen said.