November 15, 2024
FERC Denies Adjustments to Approved Rate for Artificial Island
FERC denied requests for rehearing on a formula rate for the construction of a transmission line as part of the Artificial Island Project.

FERC last week denied requests for rehearing on a formula rate it approved in April for Northeast Transmission Development’s construction of a transmission line across the Delaware River (ER16-453).

FERC artificial island project
A graphical depiction from PJM of the proposed line across the Delaware River

Both NTD and the Delaware Municipal Electric Corp. had requested rehearing of the order, though for opposing reasons. NTD argued the commission erred in denying it a 50-basis-point risks and challenges return on equity adder in its initial order, while DEMEC argued the commission erred in granting NTD a 50-basis-point adder for joining PJM and turning over operational control of the line to the RTO upon completion.

DEMEC had also argued that FERC erred in allowing any of NTD’s affiliates or subsidiaries to use the rate. The commission also denied this, clarifying that it applies to any affiliates or subsidiaries that may be formed in the future as well.

The efforts might all be for nothing though, as NTD’s line is part of the Artificial Island project, which has been mired in years of delay. The project — PJM’s first competitive solicitation under FERC’s Order 1000 — is undergoing reanalysis and scope changes that won’t be known until at least April. (See PJM Analysis on Artificial Island Project Delayed Again.)

FERC & FederalPJMPublic PolicyTransmission Planning

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