PJM Proposes to Eliminate Charge for FERC 1000 Projects Under $20 Million

PJM will refile revised language regarding Federal Energy Regulatory Commission Order 1000 greenfield projects estimated to cost less than $20 million. The proposal was endorsed at the Members Committee meeting on March 26.

The revised language proposes a $30,000 non-refundable fee to cover the costs of evaluating transmission projects in excess of $20 million.

Originally, PJM proposed a $30,000 non-refundable fee for all greenfield projects. The FERC agreed that it is reasonable to charge a fee to cover the costs of evaluating transmission projects but called the proposal for projects under $20 million “unduly discriminatory” for new transmission developers.

PJM has proposed to eliminate the charge for all projects under $20 million, whether greenfield or an upgrade.

In 2014, PJM received 185 total projects to study (94 greenfield, 91 upgrades). Of these, 84 (12 greenfield, 72 upgrades) are under the $20 million threshold.

The fee structure will have a two-year trial. After that period, PJM will continue to use the fee structure while determining if it is the best method going forward.