PJM yesterday began inviting competitive proposals for transmission improvements to provide relief at its 25 most congested locations.
The top 25 “congestion events” are projected to cost $237.8 million in 2017 (97% of all congestion for the year), rising to $514 million (95% of the total) in 2023. Proposals for “market efficiency” projects to relieve the congestion will be accepted through Sept. 26.
The competitive solicitation is PJM’s second to be conducted under the rules of FERC Order 1000, which reduced transmission owners’ historic Rights of First Refusal and opened transmission projects to competition. See PJM Briefs TEAC on Artificial Island Proposals.
Eight of the 25 locations eligible for market efficiency projects are market-to-market (M2M) flowgates between PJM and MISO and would have to be approved by both regions. Three spots are located in Commonwealth Edison and two each in Dayton Power & Light, MetEd and PECO.
The top location on the 2017 list is the Breed 345 kV-Wheatland Power Facility 345 kV, a market-to-market line projected to bind for 3,063 hours at a cost of more than $59 million. Another M2M facility, the Pawnee 345 kV- Pawnee 138 kV transformer, is projected to bind for 4,806 hours at a cost of $34 million.
Within PJM, the top spot is the AP-South interface with Bedington-Black Oak, projected to bind for 942 hours at a cost of nearly $47 million.
In total, eight locations showed at least $20 million in congestions costs for study years 2017, 2020 or 2023.
To be considered by the PJM Board of Managers for inclusion in the Regional Transmission Expansion Plan, proposals must produce at least $1.25 in savings for every $1 in project cost.
The calculation of benefits will use PJM’s existing rules, which weigh reductions in production costs at 70% and changes in net load payments at 30%.
However, the proposals will be restudied next year, when PJM’s new benefit formula — which weights the impact on production costs and net load payments equally — takes effect. (MRC Approves New Benefit Test for Market Efficiency Projects)
PJM’s Chuck Liebold said the joint operating agreement with MISO does not require opening of a competitive window for the M2M flowgates, which he said is being done on “an experimental basis.”
