VALLEY FORGE, Pa. — PJM staff on Thursday unveiled to the Planning Committee a proposed new fee structure for a more involved cost-containment process.

The proposal suggests charging a $5,000 nonrefundable flat fee to all developers who submit competitive projects. Itemized study costs will be added as necessary. Mark Sims, PJM’s manager of infrastructure coordination, said the intent is to bill projects that incur the extra expense. Late payment and nonpayment conditions have yet to be determined.

Sims previously told the PC that PJM’s old tiered approach, approved in 2014, doesn’t account for the increased cost of the new comparison framework that involves an independent consultant’s review and legal and financial analyses. (See “New Fee Structure for Cost Containment Needed,” PJM PC/TEAC Briefs: May 16, 2019 and “PJM Developing Hybrid Fee Structure,” PJM PC/TEAC Briefs: June 13, 2019.)

Sims said PJM will host a special PC workshop on Aug. 29 to discuss this structure in more detail, which will eventually be added to Manual 14F.

Cost Allocation Dispute Leaves Tariff Changes in Limbo

PJM staff said required Tariff changes covering cost allocation for transmission projects remain in limbo as the RTO waits on FERC to respond to a motion to address a remand related to the issue.

Pauline Foley, PJM’s associate general counsel, said transmission owners made the motion after the D.C. Circuit Court of Appeals “set aside” a 2016 FERC ruling that allowed transmission projects driven by local planning criteria to be exempt from competitive bidding. (See FERC Sides with Incumbent TOs; OKs Limits on Competition.)

On clarification, the court, citing its original opinion, said it held “‘only that FERC did not adequately justify its approval of the [Tariff] amendment at issue.’ Nothing in the opinion prevents FERC on remand from attempting to ‘provide a better justification for its approval of the Tariff amendment.’”

Petitioners Old Dominion Electric Cooperative and Dominion Energy filed motions for an order on remand arguing that the court’s decisions leave no doubt that the 50/50 cost allocation for regional facilities is in effect pending further action by FERC. LS Power commented that it is appropriate for the commission to bring the matter to an end.

FirstEnergy, Dominion Solutions

Dominion proposed the following solutions for several proposed supplemental projects in Virginia:

• Cut an existing 230-kV line between Roundtable and Buttermilk substations. Construct a 1.8-mile, 230-kV loop to Lockridge substation. At Lockridge, install four 230-kV breakers to terminate the two lines. Install two 230-kV circuit switchers and any necessary high-side switches and bus work for two initial transformers (five ultimate). Cost estimate is $35 million and in-service date is July 31, 2022.
• Install a 1,200-amp, 50-kAIC circuit switcher and associated equipment (bus, switches, relaying, etc.) to feed the new transformer from the existing 230-kV bus No. 5 at Beaumeade. Cost estimate is $750,000, and in-service date is March 31, 2020.
• Re-conductor Cochran Mill-Ashburn 230-kV and Ashburn-Beaumeade 230-kV line segments using a higher capacity conductor, as well as upgrade the terminal equipment to achieve a rating of 1,572 MVA. Cost is $15 million and in-service date is June 1, 2023.

FirstEnergy solutions for Pennsylvania projects include:

• Replace line trap and substation conductor at the Shawville 230-kV substation and replace line relaying, line trap and substation conductor at the Shingletown 230-kV substation. Cost is estimated at $900,000 with an in-service date of Dec. 1, 2020.
• Replace line relaying, line trap and substation conductor at Elko-Shawville 230-kV Line 546/666 and Elko 230-kV substation. Replace line relaying and line trap at Shawville 230-kV substation. Estimated cost $1.3 million, with an in-service date of June 15, 2020.
• Replace the Homer City North 345/230/23-kV transformer and associated equipment with 345/230/23-kV, 336/448/560-MVA transformer. Estimated cost is $6.6 million, and in-service date is Dec. 31, 2021.
• Rebuild and reconductor approximately 33 miles of wood pole construction for the Armstrong-Homer City 345-kV line. Estimated cost of $138 million and in-service date of Dec. 31, 2023.

– Christen Smith