The demand for electricity in the PJM footprint could grow by 40% over the next 15 years, driving the need for an upgraded, expanded transmission system capable of carrying additional generation to more than 65 million people across 13 states and Washington, D.C.
In parallel with developing ways to get new generation onto the grid swiftly, PJM and stakeholders spent much of the year focused on devising transmission solutions and improving the long-term planning process.
A Core Mission: Planning the Regional Grid
At the heart of PJM’s planning practice is its Regional Transmission Expansion Plan (RTEP) (PDF) process, which identifies necessary additions and improvements to the transmission system up to 15 years into the future.
Released in March, the benchmark annual report noted how PJM and its stakeholders continue to work to identify challenges and develop solutions to maintain a reliable grid amid a historic energy transition marked by:
- The retirement of large conventional generators and an increase in interconnection requests from renewable resources whose operating characteristics differ from retiring generation
- The proliferation of new data centers, creating major pockets of significant, increasing demand
- The electrification of the transportation, industrial and building sectors
In particular, the report noted a group of baseline projects (PDF) of over $5 billion approved by the Board of Managers to address reliability violations from data center-driven load growth and retiring generation.
Work on the project by the designated developers began in 2024.
More Transmission Solutions Sought
PJM opened another window, 2024 RTEP Window 1, in July, soliciting solutions to conditions driven by accelerated load growth in various areas of the PJM footprint, generator resource mix changes and resulting changes to regional power flows.
The needs in this window focused on strengthening the transmission paths between the western and eastern regions of PJM in addition to solving more local transmission improvements across the PJM region.
In response, 94 proposals were submitted by 16 entities. Six additional proposals were submitted as joint portfolios, which grouped a number of the individual proposals.
They were proposed through a collaborative planning initiative among transmission owners Dominion, First Energy and Transource.
The proposals address critical west-east regional transfer reinforcement needs by introducing robust and reliable 765 kV developments connecting the AEP system in the west with the rest of the network in the central and southern PJM service areas. Their cost is estimated at $5.8 billion.
Focus on Interregional Transfer Capability
In addition to transmission facilities within the PJM footprint, the grid operator relies on interregional transfers of power with its neighbors, especially in times of extreme weather.
Increasing amounts of intermittent wind, solar and storage resources will change today’s interactions between neighboring systems and raise new questions about the ability to lean on each other during times of system stress.
As detailed in the paper, Energy Transition in PJM: Flexibility for the Future (PDF), published in June, the ability to continue to rely on and support neighbors will require increased coordination.
Recognizing the rising importance of regional coordination, PJM and the Midcontinent Independent System Operator (MISO) embarked on a collaborative, informational interregional transfer capability study in the second half of 2024.
Increasing transfer capability between regions may help to support greater grid resilience.
The study will identify potential opportunities for near-term transmission enhancements along the seam shared by PJM and MISO.
Specifically, PJM and MISO will work together to explore opportunities to:
- Engage in joint transmission analysis and coordinated modeling.
- Leverage planning processes to promote reliability and resilience through holistic, efficient and cost-effective transmission planning for ratepayers.
FERC Order 1920 on Long-Term Planning
PJM’s focus on transmission planning reflects a national need, as indicated by the Federal Energy Regulatory Commission’s issuance in May of Order 1920, its long-term transmission planning rule.
PJM, which had been working with stakeholders on the issue since 2022, quickly changed course to begin developing scenarios for long-term transmission planning as the first priority in complying with the new rule.
In Order 1920 and its subsequent Order 1920-A (PDF), FERC requires that transmission providers engage in regional long-term transmission planning to identify transmission needs; develop a process for selecting transmission facilities to resolve those needs; and devise cost-allocation methods based on forecasted costs of the facilities.
Transmission providers must develop at least three distinct long-term scenarios that utilize enumerated factor categories and a planning horizon of not less than 20 years. Long-term scenarios must be reviewed and updated at least once every five years. The order also calls for an enhanced role of relevant state entities and better transparency of local transmission planning processes.
Looking Forward
In 2025, PJM and stakeholders will continue preparing for the implementation of Order 1920, the deadline of which was extended two years to June 12, 2027.
In the first quarter of the year, the PJM Board of Managers will review the recommended projects for the 2024 RTEP Window 1, and planning will continue to assess needs for future windows. PJM also will be sharing the results of its interregional transfer capability study with MISO.