On October 31, 2023, PJM Interconnection staff recommended about $4.9 billion in transmission projects to help address reliability concerns related to data center growth, generator retirement, and new generation resource capacity in the Mid-Atlantic region.[1] As part of its planning process, the grid operator, which covers 13 states and Washington, D.C., establishes “windows” for transmission developers to offer solutions to certain transmission reliability needs. These needs are based on standards established by the North American Electric Reliability Corporation (NERC). Planning Window 3 sought proposals to address impacts to the grid from new electricity demand. The grid saw a 7,500 MW increase in demand due to data center additions to the system in Virginia and Maryland. The grid is also facing widespread effects of the retirement of more than 11,000 MW of generation across PJM’s footprint.

PJM’s recommended proposal was selected based on four criteria: effectiveness to meet system needs through 2028; ability to expand to meet system needs beyond 2028; minimizing of local impacts by using existing rights of way, where possible; and confidence in costs. PJM received 72 proposals from 10 entities, including six incumbent transmission owners. Under the recommendations, Dominion Energy would build transmission projects totaling about $2.5 billion, Exelon’s Potomac Electric Power would build projects totaling about $653 million, and Public Service Electric & Gas would build a $447 million project. FirstEnergy, LS Power, NextEra, and Transource would build other parts of the recommended plan. The proposal is set to be reviewed by the committee again at a December 5, 2023, meeting before going to the board.

[1] https://www.pjm.com/-/media/committees-groups/committees/teac/2023/20231031/20231031-item-15---reliability-analysis-update.ashx