PJM Board Approves $636 Million Investment in Transmission Projects

The PJM Board at its August meeting authorized more than $636 million in electric transmission projects to strengthen the grid and reduce electricity costs.

The approvals include a market efficiency project which is expected to save customers $622 million over 15 years.

The $320 million market efficiency project is expected to alleviate transmission congestion across the Pennsylvania and Maryland border. It involves upgrades at existing substations, two new substations, two new transmission lines and improvements to existing lines. The expected in-service date is 2020.

“This is PJM’s largest-ever market efficiency project, and we expect it will resolve a significant amount of the 20160714-AP-South-Line_Inside-Linesremaining transmission congestion in the eastern portion of PJM,” said Andy Ott, PJM president and CEO.

With the recently approved changes, PJM has authorized $29 billion in transmission additions and upgrades since the first Regional Transmission Expansion Plan was approved in 2000.

In May, PJM announced the results of a market efficiency study and gave its final recommendation for the AP South project proposed by Transource Energy, LLC (an affiliate of AEP). The project will be constructed by Transource Energy, LLC, Baltimore Gas & Electric and Allegheny Power.

The proposal originated out of PJM’s competitive process for transmission improvements.

Other Projects

The PJM Board approved a net $316.3 million in other new or changed projects to maintain the reliability of the regional electric transmission grid.

Mid-Atlantic Region System Upgrades:

  • PPL Transmission Zone
    • Add a 200 MVAR shunt reactor at Lackawanna 500 kV substation. Cost: $10 million
  • PSE&G Transmission Zone
    • Reconductor the one-mile Bergen-Bergen GT 138 kV circuit (B-1302). Cost: $6.5 million

Western Region System Upgrades:

  • ATSI Transmission Zone
    • Build a new 345/138 kV Lake Avenue substation and a breaker replacement at the Murray 138 kV. Cost: $40.28 million
  • AEP Transmission Zone
    • Convert the Sunnyside-East Sparta-Malvern 23 kV sub-transmission network to 69 kV (lines are already built to 69 kV standards). Cost: $5.7 million
  • ComEd Transmission Zone
    • Balance station load at Goodings Grove 345 kV and replace 138 kV bus tie 2-3o. Cost: $5.4 million
    • Cut-in of Tazewell-Kendall 345 kV line into Dresden and raise towers to remove the sag limitation on Pontiac-Loretto 345 kV line. Cost: $20.4 million

 Southern Region System Upgrades:

  • Dominion Transmission Zone
    • Rebuild the Carson-Rogers Rd 500 kV circuit. Cost: $48.5 million
    • Rebuild 21.32 miles of existing line between Chesterfield-Lakeside 230 kV. Cost: $22 million
    • Expand Perth substation and add a 115 kV four-breaker ring, extend the Hickory Grove DP tap 0.28 miles to Perth, and split line at Perth to terminate it into the new ring bus with two breakers