Board Approves RTEP Changes, IRM

The PJM Board at its Dec. 7 meeting approved changes of almost $260 million to the Regional Transmission Expansion Plan to incorporate both baseline and network upgrade changes. It also approved the 2016 Installed Reserve Margin Study results of 16.6 percent for 2017-18.

The approved facility upgrades were presented to the Transmission Expansion Advisory Committee in November.

All approved projects will be incorporated into the RTEP.

The Board authorized $259.34 million for:

  • Construction of new baseline reliability upgrades totaling $158.11 million and associated cost allocations for the upgrades
  • Changes to previously approved RTEP baseline upgrades for a net increase of $47.26 million
  • Addition of facilities, network upgrades and withdrawal of cancelled facilities related to the interconnection queue for a net increase of $53.97 million

With these newest changes, PJM has authorized more than $29 billion in transmission additions and upgrades since the first Regional Transmission Expansion Plan began in 2000.

Installed Reserve Margin 

 The Board also approved the Installed Reserve Margin (IRM) and associated parameters for each of the next four delivery years based on results from PJM’s annual Installed Reserve Margin Study.  These parameters are key inputs to the Reliability Pricing Model auctions.  The IRM study also satisfies the requirements of the resource adequacy standard for the ReliabilityFirst Corporation.

The study results re-set IRM for the delivery years of 2017/18, 2018/19, 2019/20 and establish the initial IRM for 2020/21.The study examines the 11-year planning horizon, from June 1, 2016, through May 31, 2027.

Based on results, PJM recommended a 16.6 percent IRM for the 2017/2018, 2019/2020 and 2020/2021 Delivery Years and a 16.7 percent IRM for the 2018/2019 Delivery Year.