VALLEY FORGE, Pa. — Maryland and Delaware officials are protesting PJM’s proposal to allocate most of the cost of the stability fix at Artificial Island to Delmarva Power & Light ratepayers.
PJM planners expect to present their recommended fix to the Board of Managers on July 27, after a meeting with the board’s Reliability Committee, which is made up of four of the board’s 10 members.
The project has been mired in controversy since planners last summer recommended Public Service Electric & Gas for the job, only to have the Board of Managers reopen the bidding following an outcry from finalists, environmentalists and New Jersey officials. On April 28, planners completed a second review, recommending selection of a proposal by LS Power. Including upgrades by PSE&G and Transource, the project is expected to total more than $200 million. (See PJM Staff Picks LS Power for Artificial Island Stability Fix; Dominion Loses Out.)
The recommendation has drawn comments and complaints from several losing bidders and the public service commissions of Maryland and Delaware, which objected to the cost allocation. The Delaware Public Advocate and Old Dominion Electric Cooperative also raised objections over the allocation.
Steve Herling, vice president of planning, told the Transmission Expansion Advisory Committee that the allocation is based on the location of the solution, not the problem. In this case, while the stability fix affects nuclear generators located in New Jersey, the project would entail transmission terminating in Red Lion, Del.
In its letter to the board, the Delaware PSC estimates that the AI fix could boost Delmarva’s annual transmission revenue requirements by $30 million over the current $121 million, an increase of almost 25%. Ratepayers of ODEC and the Delaware Municipal Electric Corp. also would be affected.
The Maryland PSC echoed its neighboring state’s concern, saying, “We do not view such a cost allocation as reasonably comparable to the benefits received from the project, which we believe would flow equally to at least New Jersey and Pennsylvania residents. Thus, such an allocation of costs, we believe, is in violation of FERC’s Order 1000 cost allocation principles and directives.”
PJM Holds Firm on its Pratts Decision
PJM planners reaffirmed their recommendation to select Dominion Resources and FirstEnergy to resolve reliability problems near Pratts, Va., despite feedback from several stakeholders questioning their decision. (See Tx Developers Challenge PJM Choice on Pratts Project.)
The feedback was received from three entities that were unsuccessful in vying for the project: Ameren, ITC and LS Power’s Northeast Transmission Development.
“We’ve been pretty consistent in the way we’ve been evaluating all the proposals submitted in a proposal window,” said Paul McGlynn, PJM general manager of system planning, noting that the key factors in PJM’s decision were performance, cost and risk associated with siting, feasibility and cost commitment.
PJM will continue to accept comments regarding the decision until July 13. It plans to make its recommendation to the Board of Managers at its meeting July 27.
— Suzanne Herel