FERC Taking Second Look at Cost Allocation for 2 PJM Projects
FERC issued orders  granting rehearing  to allow it more than 30 days to reconsider complaints that PJM’s use of DFAX is inappropriate for two projects.

By Suzanne Herel

FERC is taking another look at its April orders approving the cost allocations for a stability fix for New Jersey’s Artificial Island nuclear complex and an upgrade of the Bergen-Linden Corridor.

The commission issued orders June 21 granting rehearing — a technical step to allow it more than 30 days to reconsider complaints that PJM’s use of the solution-based distribution factor (DFAX) cost allocation method is inappropriate for the two projects (EL15-95, ER15-2563 and ER15-2562, et al.).

ferc, pjm, cost allocationIn the case of the Artificial Island project, the public service commissions in Maryland and Delaware, along with some transmission owners, complained that the customers they represent will bear the brunt of the cost of the fix while receiving a small percentage of load savings.

Similarly, Consolidated Edison and Linden VFT disputed the fairness of the Bergen-Lindon Corridor upgrade cost allocation.

Commissioner Cheryl LaFleur dissented from both orders, saying the DFAX method was inappropriate for the two projects. (See FERC Upholds Cost Allocation for Artificial Island, Bergen-Linden Projects.)

“We know this is only one step in the process of continuing to fight the current proposal, but we are encouraged by the opportunity to again make the case to FERC that the current cost allocation scheme is both unjust and unreasonable,” Delaware Gov. Jack Markell said in a statement.

Earlier this month, Delaware lawmakers passed a resolution that would block easements needed for the Artificial Island project. (See Del. Lawmakers Try to Block Artificial Island Plan; Project Still on Track.)

DelawareFERC & FederalNew JerseyNew YorkPJM

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