MISO and PJM have endorsed one small interregional project this year after their Targeted Market Efficiency Project (TMEP) study.
The grid operators said they will pursue $200,000 of line work on the Powerton-Towerline 138-kV flowgate in central Illinois. The project is expected to yield $1.8 million in annual congestion savings benefits; PJM is projected to realize about 72% of the savings benefits and MISO 28%.
The project is one of two that survived a final round of analysis. The RTOs also considered an upgrade to a congested 138-kV flowgate near Chicago. (See MISO, PJM Down to 2 Possible TMEPs.)
PJM’s Nick Dumitriu said during a MISO-PJM Interregional Planning Stakeholder Advisory Committee meeting Thursday that the Chicago constraint’s congestion is not persistent enough to proceed with a project. He said staffs’ additional analysis confirmed that a significant part of the flowgate’s historical congestion is caused by neighboring outages.
Both RTOs will recommend early next year that their respective boards approve the Powerton-Towerline project. The project must be in service no later than June 1, 2025.
The grid operators require TMEPs cost $20 million or less, be in service by the third summer peak from approval and must completely cover installed capital costs within four years through congestion benefits.
MISO and PJM studied about $328 million of congestion from 2020-2021 in this year’s TMEP process. They originally identified 23 flowgate candidates that might benefit from a TMEP project and reviewed potential problem spots for interregional solutions.
Clean Grid Alliance’s Natalie McIntire asked that the RTOs consider raising the $20 million cost threshold to increase the chances for other potential projects.
“There’s certainly been a significant amount of inflation and overall cost increases,” McIntire said.
