PJM To Move Forward With Long-Term Planning Scenarios

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PJM and stakeholders will begin developing scenarios for long-term transmission planning as the first priority in complying with Order 1920, approved May 13 by the Federal Energy Regulatory Commission.

“We firmly support long-term planning, and we support what the Commission is trying to do to encourage long-term, forward-looking, scenario based planning,” Paul McGlynn, PJM Vice President – Planning, said Thursday at a meeting of the Markets & Reliability Committee.

“We’ve been talking about it for quite a while now with our stakeholders and the states and very much believe that it’s something that we need to be doing on a going-forward basis in the planning world,” he said.

McGlynn emphasized that PJM will be complying with Order 1920. He said PJM will develop scenarios compliant with Order 1920 and may run additional scenarios, informed by stakeholders, that PJM may find of value.

He invited feedback from stakeholders on how best to approach this engagement.

It will be more than a year until PJM receives an order on its compliance filing, McGlynn said, and that is too long to wait to proceed on long-term planning. The first step will be to construct scenarios, he said.

Jason Connell, Executive Director – Transmission & Resource Adequacy Planning, highlighted the background of the rule, PJM’s request for rehearing/clarification and next steps.

Enhancing long-term planning is needed to maintain reliability affordably amid unprecedented future changes, he said in his presentation.

PJM has been working with stakeholders on the issue since 2022, when FERC announced its notice of proposed rulemaking on long-term transmission planning.

In its final rule, FERC is requiring 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.