PJM’s Board of Managers on Tuesday told LS Power that FERC’s ruling affirming transmission owners’ rights over end-of-life (EOL) planning rendered its request for analysis of project costs moot.

The board’s letter came in response to a Nov. 12 request by LS Power that the RTO “perform additional analysis related to cost allocation for each proposed EOL high-voltage project.”

FERC in December rejected a PJM joint stakeholder proposal to move EOL projects under the RTO’s planning authority, siding with TOs who argued that it would violate their rights (ER20-2308). (See FERC Rejects PJM Stakeholder EOL Proposal.)

“While the commission determined that cost allocation concerns were outside the scope of the [tariff Attachment] M-3 proceeding, the issue is effectively addressed by the commission’s determination in its recent orders — PJM’s authority is limited to the rights transferred to PJM by the PJM Transmission Owners,” the board said in its letter. “The PJM Transmission Owners have reserved their authority over transmission rate design and cost allocation (including the allocation of costs of asset management activities and EOL supplemental projects). …

“As such, the PJM members cannot direct PJM, through changes to the PJM Operating Agreement, to conduct activities regarding transmission owner facilities not authorized by the PJM Transmission Owners.”

LS Power had argued that several “significant high-voltage EOL projects” have been proposed under Attachment M-3 but not included in the Regional Transmission Expansion Plan process.

“These proposed Attachment M-3 projects highlight the regional nature of Attachment M-3 projects and the lack of an appropriate cost allocation methodology for such projects,” LS Power had said.