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PJM seeks FERC signoff on proposed cost allocation for 14 projects [free access]

January 19, 2021

PJM Interconnection (PJM) is seeking an April 8 effective date from the Federal Energy Regulatory Commission (FERC) for electricity tariff revisions, which would incorporate cost responsibility assignments for new baseline transmission upgrades that were approved by the grid operator's Board last month.


The 14 transmission upgrades are part of the PJM Regional Transmission Expansion Plan (RTEP) and include an estimated USD69.7 million in transmission enhancements and expansions. The RTEP comprises of projects that address different criteria, such as PJM planning procedures, reliability standards, and individual transmission owners' local planning criteria.


The proposed tariff revisions submitted to FERC on January 8, 2021 lay out PJM's plan for allocating the costs for one regional facility and 13 lower voltage facilities. Regional facilities are generally alternating current (AC) facilities that operate at or above 500 kV when single-circuit, or 345 kV when double-circuit. The single-circuit, reliability project added to the RTEP is intended to address a transmission owner's local planning criteria.


According to PJM's regional cost allocation method, half of the costs of the regional facility would be allocated to specifically identified beneficiaries using the solution-based distribution factor (DFAX) analysis, while the other half would be allocated on a region-wide, postage-stamp basis.