PJM Board Authorizes $318 Million In Transmission Upgrades
VALLEY FORGE, Pa., Dec. 6, 2017 /PRNewswire/ — The PJM Interconnection Board authorized $318 million in electric transmission projects to ensure efficient and reliable power supplies for the 65 million people PJM serves. It also approved the Installed Reserve Margin of 15.8 percent for 2021-22.
“Maintaining the reliability of the grid involves continuously reviewing the system and moving ahead with transmission projects,” said PJM President and CEO Andrew L. Ott. “Today, the board has authorized a number of smaller projects, each of which is important to maintaining reliability and efficiency for people who depend on both PJM and our members.”
There are 10 projects in the PJM Mid-Atlantic Region and two in the PJM Western Region. Although many individual projects cost less than $5 million, they maintain transmission grid reliability and wholesale power market efficiency.
The two Western Region projects are a new $20 million 138-kilovolt line and substation project in the ComEd Zone and rebuilding a 161-kV line to alleviate summer and winter peak condition overloads in the AEP Zone ($16.48 million).
Among the larger projects in the approved group, two will alleviate reliability issues in densely populated areas of northern New Jersey. One will dismantle and rebuild a 230-kV line to address load requirements for future growth. The project is estimated to cost $90.4 million. Another project in North Jersey replaces an overloaded 230-kV line at an estimated cost of $80 million.
Installed Reserve Margin
The PJM Board also approved the Installed Reserve Margin (IRM) for each of the next four delivery years based on results from PJM’s annual Installed Reserve Margin Study. The IRM and other parameters help determine the price and amount of capacity procured in PJM’s Reliability Pricing Model capacity auctions.