FERC has approved PJM’s proposed cost allocation for $6.7 billion in transmission upgrades included in the first window of the 2024 Regional Transmission Expansion Plan (RTEP). (See PJM Board Approves $6B in Grid Upgrades.)
The allocation was opposed by the Maryland Office of People’s Counsel (OPC), which argued the need for more transmission is driven predominantly by data center growth in northern Virginia and that saddling Maryland ratepayers with $789 million, or 16.4% of the total cost allocation, runs against cost-causation principles. It stated that the Dominion locational deliverability area (LDA) is forecast to grow by 44% by the 2029/30 delivery year, whereas the Baltimore Gas and Electric (BGE) and PEPCO zones are expected to remain flat or see minor growth.
“The vast majority of the [Window 1] facilities will not be in Maryland, nor are they required to serve Maryland loads. Yet the Maryland LDAs will receive a disproportionate ‘spill over’ of cost responsibility because of how the (solution-based distribution factor) cost component operates under the PJM tariff’s method for determining cost responsibility for regional transmission projects,” the filing said.
“The costs are driven by the unprecedented context of huge, forecasted data center load growth in northern Virginia and how that growth impacts the PJM tariff’s method for allocation of cost responsibility,” the filing said. “Moreover, these unjust and unreasonable impacts on Maryland customers will continue in future RTEPs, as PJM pursues future procurements of transmission facilities through the RTEP process in response to continued forecasts of huge load increases in the Dominion LDA in future years.”
While the OPC objected to the figures PJM calculated, the office nonetheless acknowledged the RTO had followed its tariff in the filing. PJM responded to the OPC comments stating that its arguments are out of scope.
“[OPC] is mindful that this is not the proper proceeding in which to challenge PJM’s cost allocation under its approved tariff. [OPC] reserves its rights with respect to possible additional remedial measures required to address these infirmities in the PJM tariff as it is being applied.”
The commission’s May 27 order found PJM had properly followed its tariff and said the OPC arguments are beyond the scope of the proceeding.
“Challenges to the PJM tariff cost allocation provisions are appropriately raised through separately filed complaints and not through protests to the reports of cost responsibility assignments,” the commission wrote.
The most significant components of the work would expand the 765-kV network from the John Amos substation running east to a new facility, Rocky Point, located near the Doubs substation in Frederick County, Maryland. Another 795-kV to the south would run from Joshua Falls to a new Yeat substation, with a 500-kV loop branching off from North Anna, through a new Kraken substation and into Yeat.
