PJM “will err on the side of caution” in disclosing details from transmission developers’ project proposals, RTO officials told the Planning Committee Thursday.
On April 29, PJM announced opened its first “proposal window” under the Federal Energy Regulatory Commission’s Order 1000, which opens transmission projects to non-utility transmission developers. PJM will accept proposals through June 28 to correct stability issues on Artificial Island in Hancocks Bridge, N.J., the site of the Salem and Hope Creek nuclear plants.
Steve Herling, PJM vice president of planning, said the RTO will release “no brainer information” on proposals submitted in response to the Artificial Island needs and future proposal windows.
Such information would include “a line from A to B, impedance modeling, so people can analyze [the proposals],” Herling said. “We won’t put out right of way information. You’d get the public all stirred up that `we’re looking at your property.’”
Prequalification
Order 1000 eliminated incumbent utilities’ Right of First Refusal on construction and operation of new transmission lines, opening the business to competition from independent transmission developers. Incumbents will retain the right to construct “upgrades” to their existing facilities.
PJM has created a two-step process for complying with Order 1000. First, potential transmission developers must be prequalified based on their ability to construct and maintain a generic transmission project.
Those prequalified will be eligible to submit solution packages in response to proposal windows like that for Artificial Island.
PJM officials said Thursday that seven developers have submitted prequalification packages with more applications expected shortly.
Herling said the application packages will be posted publicly after PJM determines which ones are prequalified. “There has to be some due process to challenge the decisions we’ve made,” he said.
Constructability Template
PJM has created a template to evaluate responses to its proposal windows. The RTO plans to hire independent consultants to validate developers’ cost estimates and identify potential regulatory risks, such as the likelihood of obtaining siting for rights of way.
“If you have half the right of way in hand, that certainly will have an impact on cost and regulatory risk and would probably affect construction time,” Herling said. “To give you credit, we would have to disclose some information. We don’t have to talk about individual pieces of property you have.
“If it becomes obvious that we’re relying heavily on one piece of information we’re going to have to make it public — and you might still not get chosen,” he continued. “… We’ll have to make sure it’s transparent and above board to defend ourselves against challenges.”