TEAC Reviews AP-South, Artificial Island, RTEP Windows

PJM announced the results of long-anticipated market efficiency studies and members heard presentations on several important projects at the May 12 Transmission Expansion Advisory Committee meeting. The committee discussed the AP-South project between Pennsylvania and Maryland, updates on Artificial Island and the Clean Power Plan.

AP-SOUTH

PJM reviewed its final recommendation for a market efficiency project proposed by Transource Energy, LLC (an affiliate of AEP), which is designed to alleviate congestion between the Pennsylvania and Maryland border.

The project was part of the 2014/2015 long-term Regional Transmission Expansion Plan window. PJM examined combinations of projects along with portions of the AEP project, as well as several other proposals, all of which satisfied PJM’s criteria for cost-benefit ratio of 1.25.

PJM selected Project 9A, which will be constructed by Transource, Baltimore Gas & Electric, and Allegheny Power. The project has eight components – a combination of upgrades and a new build – and will cost $340.6 million. The expected in-service date is 2020.

Although some stakeholders voiced concern that PJM was rushing the project, PJM staff is comfortable with the recommendation, citing retool, sensitivity studies, and the savings for AP-South congestion, total PJM congestion, and production costs.

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

In conjunction with the announcement, PJM posted a white paper on the  on several of the proposals that were submitted as part of the 2014/15 long-term proposal window which includes the potential siting, permitting, costs and construction challenges for several projects exceeding $50 million.

Component Description Designated Entity
Project 9A (Without Capacitors)
Tap the Conemaugh – Hunterstown 500 kV line & create new Rice 500 kV & 230 kV stations. Install two 500/230 kV transformers Transource Energy, LLC
Build new 230 kV double circuit line between Rice and Ringgold Transource Energy, LLC
Tap the Peach Bottom – TMI 500 kV line & create new Furnace Run 500 kV & 230 kV stations. Install two 500/230 kV transformers Transource Energy, LLC
Build new 230 kV double circuit line between Furnace Run and

Conastone

Transource Energy, LLC
Rebuild the Conastone – Northwest 230 kV line Baltimore Gas & Electric
Additional Reliability Upgrades
Replace the Ringgold #3 and #4 230/138 kV transformers Allegheny Power
Ringgold bus reconfiguration Allegheny Power
Rebuild/reconductor the Ringgold-Catoctin 138 kV & replace terminal equipment at both ends of the circuit Allegheny Power

ARTIFICIAL ISLAND

Since the March TEAC meeting, when PJM reported higher design costs for the project than the original  engineering estimates for portions of the project, PJM and PS&EG have been working together to find alternative approaches for cost savings and efficiencies

PJM, PSE&G and LS Power are working to identify several alternative line routing and substation location options for the Artificial Island connection of the new 230 kilovolt line to Delaware.

Considerations for any alternative configuration include performance, rights-of-way, permitting impacts, cost and schedule.

PJM will continue to update members as alternatives  evolve.

RTEP WINDOWS

PJM announced that it anticipates the second 2016 RTEP will open at the end of June.

It also discussed proposals that were presented during the first 2016 window. PJM will recommend two projects in the Dominion transmission zone to address generation deliverability issues and end-of-life equipment issues.

In its analysis, PJM examined generation deliverability and common mode outage analysis. The preliminary results are available on pjm.com.