PJM officials said last week they will likely recommend that the Board of Managers approve 23 reliability projects proposed during the first solicitation window of the 2014 Regional Transmission Expansion Plan.
Twenty-two of the projects, totaling $82 million, are upgrades and would be awarded to the incumbent transmission owner in the zone.
PJM officials told the Transmission Expansion Advisory Committee they are still comparing several greenfield proposals against incumbent PPL’s proposed upgrade to correct overloads on the Montour–Milton–Sunbury 230-kV line. In addition to two upgrades proposed by PPL, PJM also received 10 greenfield proposals in the PPL zone ranging from $29 million to $164 million.
PPL has also proposed a new double circuit 500-kV line and substations spanning the PPL and Penelec zones at a cost of $1.367 billion.
The 22 “preliminary recommended solutions” ranged from $20,000 (closing a normally open switch) to $26.5 million (reconductoring a 230-kV line and upgrading terminal equipment). They were selected from 45 proposed transmission owner upgrades and 61 greenfield projects addressing about 50 facilities in 18 transmission zones.
Projects not recommended were either more expensive than the selected alternatives or addressed reliability issues related to expected generator retirements or additions. Projects addressing changes in generation will be reconsidered as retirements and additions are finalized.
Top Congestion Spots Identified
Planners also released the list of PJM’s 25 most costly transmission constraints in preparation for the opening of a second RTEP window that will include “market efficiency” proposals to reduce congestion.
The top 25 chokepoints are responsible for almost $539 million of the $593 million in projected congestion costs for 2015.
The analysis found congestion resulting from wind generation in the ComEd zone and being reduced by new generation planned for the MAAC and Southern PJM regions.
Rising load and natural gas prices are expected to add to congestion in future years. Higher gas prices after 2020 are expected to aid coal-fired generation.
Planners said they will conduct cost-benefit analyses to determine whether to accelerate planned reliability projects that also benefit market efficiency.
The second window, which will also include long-term reliability fixes, will be open from Nov. 1 through February 2015. PJM will finalize the proposal document and criteria for proposals in October after accepting feedback on the model through September.
‘Lessons Learned’ Poll Results
Meanwhile, PJM officials said they will work with stakeholders to improve the solicitation process based on feedback received in response to a poll conducted last month. Eleven topics received 10 or more votes in favor.
Commenters said PJM should develop and follow a step-by-step process consistent with its Tariff, including clear identification of the metrics the RTO will use to evaluate proposals.
Some respondents said incumbent TOs should be awarded responsibility for construction when PJM significantly modifies proposed projects to develop the most effective solution.
Planners were criticized in July for their recommendation that Public Service Electric & Gas be selected to fix the Artificial Island stability problem in southern New Jersey. PSE&G’s winning proposal was estimated at $1.066 billion before PJM planners eliminated two 500-kV lines from it, reducing the project’s cost by more than three-quarters. (See PJM Board Puts the Brakes on Artificial Island Selection.)
Others said proposal submission requirements should be more general for windows open for only 30 days than for 120-day windows. The 30-day windows would use high-level cost estimates, environmental analyses and power flow data to demonstrate the proposals’ effectiveness.
