FERC last week approved a designated entity agreement (DEA) for Transource Energy to construct the AP South Congestion Improvement Project, subject to the outcome of a formula rate case the company has submitted to the commission (ER17-349).

PJM last year approved a $340.6 million proposal by Transource and Dominion High Voltage to address the congestion issue along the border of southwestern Pennsylvania and northwestern Maryland, despite criticism from other stakeholders. FERC noted in its approval that Transource has submitted security of $5.55 million for its $197.1 million portion of the project. (See “Planners to Recommend $340.6M Solution to Congestion in AP South,” PJM Planning Committee & TEAC Briefs.)

The commission’s approval lists Transource’s project requirements, including the installation of a 230-kV double-circuit line between the Ringgold substation and the new Rice substation and one between the Conastone substation and the new Furnace Run substation.

Old Dominion Electric Cooperative objected to the DEA, saying that it included cost recovery items that the commission should consider individually. American Electric Power responded that the agreement instead provides better transparency into Transource’s cost-containment commitments. (Transource is a joint venture of AEP and Great Plains Energy.)

FERC acknowledged both points, ruling that its acceptance of the DEA is subject to the outcome of the rate case (ER17-419).

– Rory D. Sweeney