Dominion and PSE&G appear to have vaulted into contention in the Artificial Island contest following a design change by PJM planners.
In a special meeting of the Transmission Expansion Advisory Committee yesterday, PJM planners presented charts summarizing their analysis of 10 finalist proposals to fix stability problems at Artificial Island, home of the Salem and Hope Creek nuclear plants.
A 230-kV proposal by LS Power (proposal #5A), which PJM had previously identified as the cheapest among the 10, fared well in the analysis.
But two 500-kV proposals by Dominion Virginia Power (#1C) and PSE&G (#7K) that were in the middle of the pack in cost — and did poorly in the analysis in their original forms — had their standings improve dramatically when PJM reevaluated them after eliminating a second tie line between the two nuclear plants.
The proposals not only got the top two scores in the analysis but also saw their costs reduced by $34 million and $43 million, respectively. PJM estimates either revised project would cost between $211 million and $257 million, the same range it assigned to the LS Power plan.
The estimates do not include an additional $80 million for static VAR compensators (SVCs), which PJM determined were necessary to improve performance of each of the proposals.
Cost Allocation
The LS Power proposal, which would run a 230-kV line across the Delaware River to a new or expanded substation on the Delmarva Peninsula, could face opposition from Delaware regulators. PJM told stakeholders at the last TEAC meeting that its cost would be allocated entirely to the Delmarva Power and Light zone. (See Delaware Unhappy with Artificial Island Cost Allocation.)
PJM did not provide an allocation for the revised Dominion and PSE&G proposals, which would both add a 17-mile, 500-kV line paralleling an existing 500-kV line from Red Lion to Hope Creek. But officials indicated yesterday that the allocation would be similar to that of a proposal by Exelon and Pepco Holdings Inc. that would follow an identical route. Its cost would be spread among two dozen transmission zones and merchants.
PJM will accept written comments on its analyses through June 2. It plans to review stakeholder feedback and present planning staff’s recommendation for the project’s design and developer at a special TEAC meeting June 16. The planners are scheduled to present their recommendation to the PJM Board of Managers July 22.
Color-Coded Summary
PJM yesterday presented a chart summarizing its analyses of the proposals, assigning color codes for each of 25 attributes in seven categories: green (positive or limited impact); yellow (some impact) and salmon (negative impact). (See p. 197 of the presentation.)
Steve Herling, vice president of planning, said each of the finalist proposals solve the stability problem. “All of these other issues are going to be factored in because the performance is so close,” he said.
Herling cautioned that the three colors included in the chart could not capture the subtleties of the planners’ analyses. “It’s a visual” summary, he said. “We don’t want people to read too much into it.”
RTO Insider summarized the findings by assigning a score of 1 to green, zero to yellow and -1 to salmon.
The PSE&G 7K proposal scored a 1 out of a possible 25 in its original form but received a 9 when the second tie line was removed — the best of all 12 proposals analyzed.
Dominion’s 1C proposal received a -2 in its original form but improved to an 8, second-best, without the tie line.
LS Power’s proposal scored a 7, ranking it third.
Tie Line Eliminated
Deleting the second tie line from the Dominion and PSE&G proposals not only reduced their costs. It also eliminated the proposals’ negative grades in the project complexity and operational impacts categories. The only remaining negatives for the two proposals related to their wetlands impact and land permitting issues.
PJM estimates the proposals will affect 350 acres of wetlands. But one stakeholder questioned that, saying only 30 acres — the ground under the transmission towers’ foundations — would be affected.
LS Power’s proposal received three negative grades under the operational impact, and siting and permitting categories. PJM said its plan for an overhead crossing of the Delaware was likely to face more public opposition than submarine crossings. “Out of sight, out of mind, if you will,” said Paul McGlynn, general manager of system planning.
The PSE&G and Dominion proposals also employ an overhead design but would follow an existing Delaware River crossing.
Sharon Segner, vice president of LS Power, said PJM should leave the decision regarding the manner of crossing the river to the U.S. Army Corp of Engineers, which has jurisdiction over the river. LS Power’s nearly identical proposal for a submarine crossing (#5A) would add as much as $45 million to the project cost.
Segner said the PSE&G and Dominion proposals face potential permitting problems because the route is within a half mile of 350 homes and includes three miles through the Supawna Meadows National Wildlife Refuge and 10 miles of wetlands.
PSE&G may have an edge over Dominion because it already owns some of the right of way needed. Sister company PSEG Nuclear LLC is the operator of the Salem and Hope Creek plants.
In its favor, LS Power holds an option on the site of its proposed substation in Delaware.
