September 19, 2024
PJM to Invite Market Efficiency Transmission Projects
PJM expects to open a proposal window for market efficiency transmission projects later this year, PJM officials told members at last week's TEAC meeting.

PJM expects to open a proposal window for market efficiency transmission projects later this year, PJM officials told members last week.

Steve Herling, PJM vice president of planning, said the window would allow transmission developers to propose cost-saving solutions to congestion issues identified by PJM staff. PJM officials said the window would be opened after PJM staff completes its analysis of public policy transmission needs.

“We may not open a window for another month and a half,” Herling told the Transmission Expansion Advisory Committee. “That doesn’t mean you can’t start working now.”

In an earlier meeting with the Planning Committee, Herling said that the window “will be less focused than” that opened earlier this year to address stability problems at Artificial Island in New Jersey. (See related article.)

Location of High Voltage Problems Identified by PJM (Source: PJM Interconnection, LLC; p. 11, RTEP Reliability Analysis, TEAC 7-10-13)
Location of High Voltage Problems Identified by PJM (Source: PJM Interconnection, LLC; p. 11, RTEP Reliability Analysis, TEAC 7-10-13)

In 2012, PJM identified $718.6 million in gross congestion, $347 million of which was unhedgeable, a reduction from the $998 million in market congestion for 2011. (See Table.)

Fifteen monitored facilities were responsible for at least $10 million each in gross congestion, led by APSOUTH with $126 million of gross congestion, almost one-fifth of the total.

Proposals must meet or exceed a 1.25 benefit-to-cost threshold to be considered by the Board of Managers for inclusion in the Regional Transmission Expansion Plan.

The Market Efficiency case files are available to those with a Ventyx database license and clearance to view Critical Energy Infrastructure Information (CEII).

In a related matter, Herling said PJM has completed its review of applications from most of the 12 companies that sought prequalification as transmission developers under FERC Order 1000, which reduced transmission owners’ historic Rights of First Refusal and opened transmission projects to competition. PJM will post the results of its reviews within two weeks, Herling said.

FERC & FederalPJM Planning Committee (PC)PJM Transmission Expansion Advisory Committee (TEAC)Transmission Planning

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