MISO and PJM halved their shortlist of potential smaller interregional transmission projects down to two but warned that even those project benefits might be too small to proceed.
The RTOs staffs presented the two contenders Monday during MISO-PJM Interregional Planning Stakeholder Advisory Committee (IPSAC). The potential targeted market efficiency projects (TMEPs) are line work on the Powerton-Towerline 138-kV flowgate in central Illinois and a potential fix for the congested Chicago-Praxair 138-kV flowgate near the Chicago area. (See MISO, PJM Consider 4 Small Interregional Projects.)
The grid operators studied 23 flowgates accounting for $328 million of congestion costs during 2020-21 in this year’s TMEP process.
PJM’s Nick Dumitriu said analysis is still underway and said the two remaining projects won’t necessarily be eliminated. He said the RTOs are still comparing anticipated project costs against the first four years of estimated project benefits.
“It’s premature to say there won’t be a TMEP,” he said, predicting that “at least” one project could still be recommended to the RTOs’ respective boards of directors by the end of the year.
Stakeholders have asked the grid operators to consider raising the $20 million TMEP cost threshold given continued inflation and supply chain issues.
TMEP projects must cost less than $20 million, completely cover installed capital cost within four years of service, and be in service by the third summer peak after their approval. The projects are assessed using a shorter time horizon than interregional market efficiency projects.
MISO and PJM have approved three small TMEP portfolios since 2017 and one larger interregional market efficiency project in 2020.
This summer, WEC Energy Group’s Chris Plante asked the grid operators to consider creating a joint targeted interconnection queue study similar to that undertaken by MISO and SPP. That work has resulted in identifying about $1 billion of projects on their seams. (See MISO, SPP Propose 90-10 Cost Split for JTIQ Projects.)
“We are very encouraged by the progress with SPP and would like to see a similar initiative with PJM,” Plante said.
