FERC Approves Second PJM and NJBPU OSW Transmission Study Agreement

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The Federal Energy Regulatory Commission has approved the next phase of a historic collaboration between PJM and the New Jersey Board of Public Utilities to use PJM’s competitive planning process to help New Jersey continue to advance its offshore wind goals.

In its April 1 order (DOC), FERC signed off on the next phase of the State Agreement Approach Study Agreement, or SAA 2.0. This marks the second time New Jersey has leveraged a provision in PJM’s Operating Agreement that enables the state to take advantage of PJM’s expertise and planning process to develop transmission improvements necessary to support the reliable interconnection of public policy resources.

This request asks PJM to solicit transmission solutions to serve an additional 3,500 MW of offshore wind energy, totaling 11,000 MW, by 2040.

PJM filed the agreement, signed by PJM and NJBPU, with FERC on Feb. 2, and it was made effective as of Jan. 3, 2024, as requested.

New Jersey is the first state to use PJM’s State Agreement Approach process to advance public policy goals. PJM’s work with NJBPU under the SAA has been cited as a model for other states to develop the transmission infrastructure needed for their own energy policies.

NJBPU in November 2020 requested use of the SAA to incorporate New Jersey’s initial offshore wind goals (7,500 MW by 2035) into PJM’s regional transmission planning process. That culminated in NJBPU awarding $1.1 billion in projects to construct the onshore transmission facilities necessary to deliver those 7,500 MW to New Jersey customers, while minimizing community and environmental impacts and customer costs. Those enhancements to the grid are currently being implemented by the designated entities that were awarded project components.