Planning Committee

Stakeholders Long-term Regional Transmission Planning Proposal

VALLEY FORGE, Pa. — The Planning Committee endorsed PJM’s long-term regional transmission planning (LTRTP) proposal during its March 5 meeting, advancing manual revisions that would expand the RTO’s planning horizon to 15 years. (See “PJM Presents Long-term Planning Proposal,” PJM PC/TEAC Briefs: Jan. 9, 2024.) 

The changes are centered around two base cases focused on reliability needs eight and 15 years out; two policy scenarios looking at new entry backed by state legislation eight to 15 years in advance; and an additional policy scenario including higher generation entry not backed by signed legislation. The two-year planning cycle would be extended to three years because of the increased number of scenarios. The proposal was endorsed by the PC with 66% support, setting it on a path to undergo a first read at the Markets and Reliability Committee on March 20 with an endorsement vote possible April 25. 

Thermal and voltage analyses would be performed on the eight-year base scenario, replacing the existing 10-year model for voltage analysis, and would then inform the five-year Regional Transmission Expansion Plan (RTEP) near-term process. Thermal and voltage analysis would also be performed on the 15-year scenario. 

PJM’s Michael Herman said staff continue to view the RTEP process as focused on ensuring reliability through a holistic approach, and the new process would enhance the existing rounds of analysis by considering the impacts of a wider range of generation scenarios. He said there is potential for the policy scenarios to influence the scope of projects that PJM recommends be added to the RTEP, though more stakeholder discussions are needed to flesh out the process. 

“This is something PJM will have to continue to evaluate and discuss with stakeholders … but the way that PJM envisions this [is that] we can’t be performing the reliability base case in a silo,” he said. 

PJM Vice President of Planning Paul McGlynn gave the example of the reliability scenarios recommending the construction of a new line and the policy scenarios suggesting designing the line with a higher voltage. He said the policy analysis could also lead to PJM preferring expandable solutions. 

PJM’s Jonathan Kern said the distinction between the reliability and policy scenarios would allow the RTO to continue to follow cost-causation principles, adding that the planning process would first identify projects needed for reliability; anything needed to support assumptions beyond that would be allocated as State Agreement Approach projects. 

Paul Sotkiewicz, president of E-Cubed Policy Associates, said the proposal doesn’t follow market principles and would grant the RTO a power akin to developing its own integrated resource plans. He also argued that the quick-fix stakeholder process used to develop the proposal hasn’t allow for adequate stakeholder analysis of the impact the proposal could have. The quick-fix process allows for an issue charge to be brought concurrent with a proposed solution. 

“This is PJM having too much discretion about investments in our assets, whether they’re existing or potentially new,” he said. 

Stakeholders also questioned whether PJM has the authority to implement the changes through manuals revisions alone, arguing that revisions to the governing documents and FERC filings are necessary. 

Transmission Expansion Advisory Committee

PJM Updates RTEP and Market Efficiency Window Schedule

PJM is planning to open a 30-day RTEP window March 12 as part of the 2023 RTEP to address growing data center load in Columbus, Ohio, which is part of the AEP transmission zone.  

PJM’s Wenzheng Qiu told the Transmission Expansion Advisory Committee that there also are thermal violations identified in the PSEG zone around its Hinchmans substation and that the 500-kV Fentress-Yadkin line in the Dominion zone is nearing end of life. 

The window is shorter than the typical RTEP process because of the immediate-need nature of the violations. Qiu said the earliest PJM is likely to do a first read on projects it may recommend from the window is June. 

The RTO has completed the base case assumptions for the 2024/25 market efficiency cycle and is planning to open a competitive window in January 2025 to address congestion on several lines, PJM’s Nick Dumitriu told the committee. He said much of the new congestion identified since the previous base case is driven by changes in the load forecast, changing market conditions and the RTEP upgrades approved by the Board of Managers. 

Supplemental Needs and Project Proposals

FirstEnergy presented a project to replace two 230/46-kV transformers at its Yeagertown substation in the Penelec transmission zone because of their age and increased risk of failure. The cost to replace both is estimated to be about $7.5 million. Completion of the project is expected by Oct. 17, 2025. 

Also in the Penelec zone, the utility said there is a need to replace three segments of its 345-kV transmission corridor between the Erie West and Armstrong substations. The line was constructed more than 50 years ago and is experiencing deterioration of wooden H-frame structures. Sections of the corridor, which intersects with the Handsome Lake and Wayne substations, have experienced multiple unplanned outages since 2015. 

FirstEnergy also presented a proposal to replace three 500/138-kV transformers at its Cabot substation in the APS zone for $24.6 million. The transformers are nearing their end of life and seeing elevated maintenance issues. The transformers would be replaced on a staggered timeline, with the first installation slated to be completed by Dec. 31, 2027, and the third by June 30, 2028.