Developer Questions Need for PSEG Projects Without ‘Wheel’
A transmission developer asked PJM to determine if four projects in the PSE&G territory  are still necessary if Con Edison makes good on its threat to terminate the “PSEG wheel” to route power into New York City.

A transmission developer is asking PJM to determine if four projects in the Public Service Electric and Gas territory in North Jersey are still necessary if Consolidated Edison of New York makes good on its threat to terminate the “PSEG wheel” to route power into New York City.

Writing on behalf of Linden VFT, GE Financial Services  asked PJM Nov. 16 for a reevaluation of the projects, given the “likely termination” of the wheel in 2017.

pseg wheel“We also request that PJM consider directing PSEG to cease work on the projects until careful reconsideration can be completed,” Linden VFT said.

Con Ed told PJM last month it will end use of the wheel when its current term expires on April 30, 2017, if it doesn’t win relief in a cost allocation dispute. (See Con Ed: Cost Allocation Dispute Could End PSEG Wheel.)

The four projects, part of the Regional Transmission Expansion Plan, include the Sewaren storm-hardening project, two sections of the Bergen-Linden Corridor and the Edison Rebuild.

Linden VFT is the owner of a 315-MW merchant transmission line in northern New Jersey that connects to NYISO on Staten Island. PJM has assigned it $100 million as its share of the project costs. “Linden VFT strongly believes it will not receive benefits from the projects [that] are roughly commensurate with the costs it is being asked to shoulder,” it wrote.

Linden also asked that if PJM determines the projects are still needed without the wheel, it should explore if there are less expensive alternatives.

– William Opalka

New JerseyNew YorkPJM Transmission Expansion Advisory Committee (TEAC)Transmission Planning

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