September 8, 2024
PJM: We’ll Be Cautious on Transmission Project Disclosures
PJM “will err on the side of caution” in disclosing details from transmission developers’ project proposals when implementing their first proposal window.

PJM “will err on the side of caution” in disclosing details from transmission developers’ project proposals, RTO officials told the Planning Committee Thursday.

On April 29, PJM announced opened its first “proposal window” under the Fed­eral Energy Reg­u­la­tory Commission’s Order 1000, which opens transmission projects to non-utility trans­mis­sion devel­op­ers. PJM will accept pro­pos­als through June 28 to cor­rect sta­bil­ity issues on Arti­fi­cial Island in Han­cocks Bridge, N.J., the site of the Salem and Hope Creek nuclear plants.

Steve Herling, PJM vice president of planning, said the RTO will release “no brainer information” on proposals submitted in response to the Artificial Island needs and future proposal windows.

Such information would include “a line from A to B, impedance modeling, so people can analyze [the proposals],” Herling said. “We won’t put out right of way information. You’d get the public all stirred up that `we’re looking at your property.’”

Prequalification

Order 1000 elim­i­nated incum­bent util­i­ties’ Right of First Refusal on con­struc­tion and oper­a­tion of new trans­mis­sion lines, open­ing the busi­ness to com­pe­ti­tion from inde­pen­dent trans­mis­sion devel­op­ers. Incumbents will retain the right to construct “upgrades” to their existing facilities.

PJM has created a two-step process for complying with Order 1000. First, potential transmission developers must be prequalified based on their ability to construct and maintain a generic transmission project.

Those prequalified will be eligible to submit solution packages in response to proposal windows like that for Artificial Island.

PJM officials said Thursday that seven developers have submitted prequalification packages with more applications expected shortly.

Herling said the application packages will be posted publicly after PJM determines which ones are prequalified. “There has to be some due process to challenge the decisions we’ve made,” he said.

Constructability Template

PJM has created a template to evaluate responses to its proposal windows. The RTO plans to hire independent consultants to validate developers’ cost estimates and identify potential regulatory risks, such as the likelihood of obtaining siting for rights of way.

“If you have half the right of way in hand, that certainly will have an impact on cost and regulatory risk and would probably affect construction time,” Herling said. “To give you credit, we would have to disclose some information. We don’t have to talk about individual pieces of property you have.

“If it becomes obvious that we’re relying heavily on one piece of information we’re going to have to make it public — and you might still not get chosen,” he continued. “… We’ll have to make sure it’s transparent and above board to defend ourselves against challenges.”

PJM Planning Committee (PC)Transmission Planning

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