December 22, 2024
Del. Lawmakers Resolve to Fight Artificial Island Cost Allocation
The Delaware General Assembly has passed a resolution opposing the PJM cost allocation for the Artificial Island project.

The Delaware General Assembly has passed a resolution opposing PJM’s cost allocation for the Artificial Island project and creating a seven-member Cost Equity Committee to follow the issue through a planned rehearing at FERC.

Senate Concurrent Resolution 90 takes the place of a resolution approved by the state’s House of Representatives urging the Department of Natural Resources and Environmental Control to deny any easement request related to the project under the current cost allocation method. (See Del. Lawmakers Try to Block Artificial Island Plan; Project Still on Track.)

ferc, pjm, cost allocation, artificial island

The Delaware Public Service Commission estimates that under the PJM transmission owners’ distribution factor cost allocation method (DFAX), about $354 million of the projected $410.5 million project cost will be assigned to customers in the Delmarva transmission zone, while the area stands to receive only 10% of its benefits. Following a January technical conference, FERC approved the Artificial Island project’s cost allocation on April 22. On June 21, it agreed to a rehearing. (See FERC Taking a Second Look at Cost Allocation for 2 PJM Projects.)

In addition to giving the new committee the authority to intervene in the rehearing, the measure also grants the group permission to be involved in any related court proceedings.

State and federal legislators representing Delaware, Gov. Jack Markell of Delaware, Maryland Gov. Larry Hogan and various agencies representing Delmarva ratepayers have bombarded FERC and the PJM Board of Managers with letters criticizing the cost allocation. (See Stakeholders Ask FERC to Rehear Cost Allocation Order.)

The upgrade to the New Jersey complex that houses the Salem and Hope Creek nuclear reactors involves sinking a new 230-kV transmission line under the Delaware River to Delaware.

Suzanne Herel

DelawareFERC & FederalMarylandNew JerseyPJMTransmission Planning

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