PJM Releases Preliminary CPP White Paper

This morning, Aug. 3, PJM Interconnection released the second of two studies of the U.S. Environmental Protection Agency’s proposed Clean Power Plan (CPP). This reliability analysis provides detailed supplementary information to a report presented to PJM’s Transmission Expansion Advisory Committee on July 21, 2015.turbine_with_wires

The first PJM study, an economic analysis published in March, presented potential PJM market impacts. This second study uses the results of the economic analysis as the basis for a reliability analysis to determine a range of transmission needs driven by the potential generator retirements under specific scenarios.

“PJM recognizes that the EPA’s final rule will result in changes to some of the underlying assumptions in this study,” said Steve Herling, vice president – Planning. “That will require further analysis.”

PJM will analyze the Clean Power Plan final rule for potential impacts to the power grid.  PJM also will analyze the “reliability safety valve” that EPA reportedly has included in the final rule.  Grid operators had requested this measure to manage any unforeseen reliability problems as the rule is being implemented.

PJM believes its white paper provides value in that it reflects the process that all RTOs/ISOs will encounter in making decisions regarding generation retirement and transmission system planning over the next 10-to-15 years to come in line with the CPP’s proposals. The modeling methodology follows what PJM does as part of its Regional Transmission Expansion Plan.