TEAC Recommends AP-South Market Efficiency Solution, Reviews RTEP Reliability Windows

This is a update of an earlier posting, adding the actions of Thursday’s Planning Committee meeting.

PJM announced its final project recommendations for the AP South market efficiency project and members heard presentations on other regional and interregional transmission expansion planning activities at the June 9 Transmission Expansion Advisory Committee meeting.

AP South Market Efficiency Solution

At the May TEAC meeting, PJM reviewed Project 9A, which it selected to address Allegheny Power South congestion, as well as congestion near the Pennsylvania and Maryland border.

The 9A project has eight components – a combination of upgrades and a new transmission – and will cost $340.6 million. The expected in-service date is 2020. The project submission was originally part of the 2014/2015 long-term RTEP window.

Since the May TEAC meeting, PJM conducted additional sensitivity studies on Project 9A, using lower gas prices. The sensitivity studies showed that the benefit/cost ratio was 4.9, which is well above PJM’s minimum threshold of 1.25 and would provide significant congestion savings to AP South.

PJM also completed additional incremental simulations and found that other proposed projects would no longer satisfy the benefit/cost ratio test once the 9A project is built.

PJM intends to recommend the project to the Board of Managers this summer.

Market Efficiency

 PJM also presented updated information on historical market congestion. The total market congestion for 2015 was about $1,385.3 million, with the top 20 congestion-causing events accounting for more than 53 percent of total congestion.

Reliability Analysis Update

PJM completed and validated a number of reliability criteria tests for 2021, including generation deliverability, common mode outage test, load deliverability, N-1 and N-1-1.

PJM anticipates opening the 2016 Regional Transmission Expansion Plan Window #2 during the last week of June to solicit proposals for the identified reliability issues.

In addition to the RTEP window, the committee discussed a number of issues, including anticipated increased load at the Newark New Jersey airport and aging infrastructure issues in Dominion and PSE&G.

Artificial Island

PJM and PS&EG continue to explore opportunities to reduce the expected cost of the Artificial Island project including an alternative interconnection at Hope Creek nuclear plant.

Detailed cost estimates for the alternate configurations are being developed and the impact to project construction and scheduling will be evaluated.  PJM will continue to update members on the project’s progress.

Planning Committee

Earlier on Thursday, the Planning Committee members covered a number of topics at their June 9 meeting, including first reads on process enhancements to the Regional Transmission Expansion Process related to transmission substation equipment and updates to Manual 20: Resource Adequacy Analysis to implement Capacity Performance changes.

 Endorsements:

  • Changes to Manual 14C: Generation and Transmission Interconnection Facility Construction, to support the inclusion of Order 1000 processes
  • Updates to Manual 14B: PJM Region Transmission Planning Process, to align light load and winter peak reliability analyses with current practices and update compliance language.
  • Changes to PJM Manual 7: PJM Protection Standards, as recommended as part of the PJM Relay Subcommittee’s biennial review.
  • The Installed Reserve Margin study assumptions, as developed in the Resource Adequacy Analysis Subcommittee.