By Rich Heidorn Jr.

PJM’s first competitive transmission project under FERC Order 1000 attracted proposals from five utilities and three independent developers.

The proposals – to correct stability issues at Artificial Island, home of the Salem and Hope Creek nuclear plants, in Hancocks Bridge N.J. – ranged from a new 230 kV line and station (estimated cost $116 million) to two new 500 kV lines (a projected $1.5 billion price tag).

The Federal Energy Regulatory Commission’s Order 1000 eliminated incumbent utilities’ Right of First Refusal on construction and operation of new transmission projects, opening the business to competition from independent transmission developers.

The diversity of technical solutions and cost estimates submitted for the Artificial Island project appears to validate FERC’s prediction that competition could reduce costs and increase innovation in transmission development.

In all, 26 proposals were submitted, led by PSE&G with 14 alternatives. Transource Energy, a partnership between American Electric Power and Great Plains Energy (owner of Kansas City Power & Light Co.), submitted four proposals, while Virginia Electric and Power Co. submitted three and LS Power offered two. FirstEnergy Corp., Atlantic Wind Connection and a partnership between Pepco Holdings Inc. and Exelon Corp. each made a single proposal.

PJM planners will evaluate the proposals through analyses including thermal and short circuit studies.

Here is a summary of the proposals which were outlined to the Transmission Expansion Advisory Committee on Wednesday:

Atlantic Wind: Install a HVDC converter station near Artificial Island; Install a SVC at the new Artificial Island HVDC station; Install a HVDC converter station near the existing Cardiff 230 kV; Install a 320 kV HVDC facility from the Artificial Island HVDC station and the HVDC station near Cardiff 230 kV. Cost: $1.012 billion. 

FirstEnergy: Install a new, New Freedom – Smithburg 500 kV line with a loop into the Larrabee 500 kV; Install two new 500/230 transformers at Larrabee; Install a Hope Creek – Red Lion 500 kV line. Cost: $452.3 million (cost submitted does not cover entire project).

LS Power: Two proposals:

Least Expensive: Install a new Salem – Silver Run 230 kV line with a 500/230 kV transformer at Salem; Install a new 500/230 kV station that taps the existing Red Lion – Cedar Creek 230 kV and Red Lion – Cartanza 230 kV lines. Cost: $116 to $148 million.

Most Expensive: Install a new Salem – Red Lion 500 kV line. Cost $170 million.

PHI/Exelon: Install a new Peach Bottom – Keeney – Red Lion – Salem 500 kV line; Remove existing Keeney – Red Lion 230 kV circuit; Reconfigure the existing 230 kV line from Hay Road – Red Lion (23020) to terminate at Keeney instead of Red Lion;  Re-conductor the Harmony – Chapel Street 138 kV line.  Cost: $475 million.

PSE&G: 14 proposals.

Least expensive: Install a new New Freedom – Deans 500 kV line; Install a new Salem-Hope Creek 500 kV line. Cost: $692 million.

Most expensive: Install new New Freedom – Whitpain North 500 kV line; Install a new Salem-Hope Creek-Red Lion 500 kV line. Cost: $1.548 billion.

Transource: Four proposals.

Least expensive: Install a new Salem – Red Lion 500 kV line. Cost: $123 to $156 million.

Most expensive: Install a new New Freedom – Lumberton – North Smithburg 500 kV line with new 500/230 sub east of Lumberton. Cost: $788 to $994 million.

Virginia Electric and Power: Three proposals.

Least Expensive: Install a new 500 kV line from Salem 500 kV to a new station in Delaware; Install a new station in Delaware that taps the existing Red Lion – Cartanza 230 kV and Red Lion – Cedar Creek 230 kV lines. Cost: $126 million.

Most expensive: Install a new 500 kV line from Hope Creek 500 kV to a new station in Delaware; Install a new station in Delaware that taps the existing Red Lion – Cartanza 230 kV and Red Lion – Cedar Creek 230 kV lines;  Install a new Salem – Hope Creek 500 kV line. Cost: $202 million.