[USA] PJM proposes nearly $5 billion in transmission projects

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

[USA] FERC accepts ISO New England plan facilitating storage as transmission-only assets

On October 19, 2023, the Federal Energy Regulatory Commission (FERC) accepted a proposal from ISO New England (ISO-NE) to allow for energy storage to “play an important role in ensuring a reliable transmission system.”[1]  Storage as transmission-only assets (SATOAs), which may include a variety of storage resources like batteries and pumped hydro storage, would be owned and maintained by transmission companies, but ISO-NE system operators would control their use. Because they would be built only to serve a transmission reliability purpose, they will not compete in electricity markets and will have minimal effect on wholesale prices. These assets would used “under specific system conditions to prevent localized overloading after at least two unplanned equipment outages on the transmission system.” They may also be deployed as a last resort to help prevent or mitigate controlled outages if demand exceeds regionally available supply or to help with system recovery after an outage.

The new rules will not apply to or restrict other energy storage resources that already compete in the markets, which include almost 2,000 MW of pumped storage and more than 600 MW of new and existing battery storage resources. The rules would also not apply to or restrict the roughly 18,000 MW of battery resources proposed in ISO-NE’s Interconnection Request Queue or future projects looking to participate in the markets. Construction of SATOAs will depend on selection in ISO-NE’s open regional system planning process administered, similar to the way reliability-based system upgrades are handled today. FERC directed the ISO to submit a filing identifying the effective date of the SATOA revisions no less than 30 days prior to their implementation.

[1] https://isonewswire.com/2023/10/25/ferc-accepts-rules-allowing-storage-to-aid-transmission/?utm_source=isone&utm_medium=newsfeed

[USA] DOE proposal could reduce permitting time for transmission

On August 10, 2023, the Department of Energy (DOE) proposed a rule to establish the Coordinate Interagency Transmission Authorization and Permits (CITAP) Program to streamline the federal permitting process for major onshore transmission lines.[1] The proposal is in response to the 2023 debt ceiling deal and would set deadlines for federal authorizations and permits for electric transmission on a two-year timeline. Currently, the process of building transmission projects can take more than a decade. While many factors contribute to the lengthy process of building transmission projects,  the CITAP program aims to ensure that the federal permitting processes are efficient and robust to enable transmission to be brought online more quickly. The DOE's plan would not override local and state permits that developers need to build transmission lines.

The proposed rule would require developers to complete Integrated Interagency Preapplication (IIP) Process for their projects to participate in the CITAP Program. Applicants would need to submit plans for engaging with stakeholders throughout the life of the project. The DOE's proposal also states that developers could appeal to the president if the department fails to act on a project application within two years or denies it. The Grid Deployment Office (GDO), which will administer the CITAP Program, is now seeking public comment and feedback on the proposed program and a public webinar will be held on August 23, 2023.

[1] https://www.energy.gov/gdo/articles/biden-harris-administration-proposes-rulemaking-streamline-and-set-deadlines-federal

[USA] FERC approves new interconnection rules to help spur new generation

On July 27, 2023, the Federal Energy Regulatory Commission (FERC) approved Order 2023, which aims to speed up interconnection processes.[1] The rule is the first major change to FERC’s interconnection requirements in 20 years. Order 2023 largely follows a Notice of Proposed Rulemaking (NOPR) released in June 2022. The rule adopts a “first-ready, first-served” cluster study approach, replacing the practice of looking at individual proposals on a first-come, first-served basis. According to FERC, this approach “will increase the efficiency of the interconnection process, help minimize delays and improve cost allocation by analyzing the transmission system impacts of multiple projects at once.”

It requires interconnection customers to pay increased study deposits, meet more stringent site control requirements, and pay commercial readiness deposits. In addition, Order 2023 sets deadlines for regional transmission organizations (RTOs) and other transmission providers to complete interconnection studies, with penalties set for missing deadlines. The rule also requires transmission providers to allow more than one generating facility on a shared site at a single point of interconnection and share an interconnection request. Transmission operators have 90 days to file plans with FERC explaining how they will put the rule in place.

[1] https://www.ferc.gov/news-events/news/fact-sheet-improvements-generator-interconnection-procedures-and-agreements

[USA] NYISO Board selects transmission project to deliver offshore wind energy from Long Island

On June 20, 2023, the New York Independent System Operator (NYISO) announced that its Board of Directors had selected the Propel Alternate Solution 5 transmission project to meet the Long Island Offshore Wind Export Public Policy Transmission Need (Long Island Need).[1] The New York State Public Service Commission (PSC) initially declared the Long Island Need in March 2021, launching an effort by NYISO’s team of experts, the New York State Department of Public Service, developers, and stakeholders to address transmission needs in and around Long Island.

Propel Alternate Solution 5 will deliver at least 3,000 MW of offshore wind power from Long Island to the rest of New York. The project will add three new underground cables connecting Long Island with the rest of the state and a 345 kV transmission backbone across western/central Long Island. Through a partnership called Propel NY, the New York Power Authority and New York Transco will develop the project. Propel Alternate Solution 5 is expected to be in service by May 2030, with an estimated cost of $3.26 billion. According to NYISO’s analysis, the project's potential economic benefits are comparable to or greater than the project cost over 20 years. NYISO expects the project to bring the state closer to its 9,000 MW of offshore wind energy goal by 2035.

[1] https://www.nyiso.com/-/press-release-%7C-nyiso-board-selects-transmission-project-to-deliver-offshore-wind-energy

[USA] DOE releases proposed framework for national transmission corridors

On May 9, 2023, the Department of Energy’s (DOE) Grid Deployment Office (GDO) released a proposed framework for designating National Interest Electric Transmission Corridors (NIETCs) for specific transmission projects.[1] NIETCs are areas where new or upgraded power lines would benefit consumers by easing existing or future constraints that limit the ability to move power to where it is needed. According to the press release, the designation of a NIETC could unlock critical federal investment and regulatory and permitting tools to spur urgent transmission investments. Specifically, transmission projects in a national corridor can use the DOE’s $2.5 billion Transmission Facilitation Program under the Bipartisan Infrastructure Law (BIL) and the $2 billion Transmission Facility Financing Program under the Inflation Reduction Act (IRA). A NIETC designation also allows the Federal Energy Regulatory Commission (FERC) to issue permits for transmission lines in a corridor when state regulators lack the authority to site the line, have not acted on an application to site the line for over a year, or have denied an application.

Under the DOE’s proposal, transmission developers could apply for NIETC designation in areas where the department has identified transmission needs through its National Transmission Needs Study, which it expects to issue late this summer. Beyond transmission developers, the DOE is considering opening the pool of applicants to tribal authorities, states, non-transmission-owning utilities, local governments, and generation developers. The DOE has requested comments on final guidelines, procedures, and evaluation criteria for the designation process. The DOE plans to issue NIETC application guidance in Fall 2023.

[1] https://www.energy.gov/gdo/articles/doe-proposes-national-interest-electric-transmission-corridor-designation-process

[USA] Coalition urges Congress to include critical transmission funding in FY 2024 budget

A coalition of over 40 clean energy organizations, environmental groups, developers, manufacturers, labor and consumer groups, and other nonprofits[1] sent a letter to the leaders of the Senate Appropriations Committee on April 24, 2023, urging Congress to provide robust funding for high-capacity transmission deployment and research through the Department of Energy’s (DOE) Fiscal Year 2024 budget.[2] The organizations highlighted the new research, such as the DOE’s draft Transmission Needs Study, emphasizing the “pressing need for additional electric transmission infrastructure” in nearly all regions of the country. The letter states that increased funding for the Grid Deployment Office (GDO), Office of Electricity (OE), and Energy Information Administration (EIA) “is critical to drive substantial clean energy deployment, unleash billions in private investment, create thousands of new jobs, deliver low-cost energy to benefit customers, and substantially reduce emissions.”

Specifically, the organizations encouraged Congress to consider funding for the GDO to support innovative efforts to address planning and permitting challenges to enable a resilient and reliable electricity system; support for GDO to designate National Interest Electric Transmission Corridors on a route-specific, applicant-driven basis; funding for the OE to help ensure the electric grid is resilient to increasingly severe weather, cyber, and physical attacks; robust investment in the Transmission Reliability and Resilience and Applied Grid Transformation Solutions programs; and additional funding for the EIA to upgrade its emissions data dashboard.

[1] American Clean Power Association, American Council on Renewable Energy, Americans for a Clean Energy Grid, Berkshire Hathaway Energy, BlueGreen Alliance, Business Council for Sustainable Energy, Cypress Creek Renewables, Enel North America, Hannon Armstrong Sustainable Infrastructure Capital, Innergex Renewable Energy, International Brotherhood of Electrical Workers Local Unit 1245, Invenergy, Longroad Energy, National Electrical Manufacturers Association, Natural Resources Defense Council, NextEra Energy Transmission, Niskanen Center, Onward Energy, Pattern Energy, Pine Gate Renewables, Sol Systems, Solar Energy Industries Association, SOLV Energy, TPI Composites, VEIR, and Vestas-American Wind Technology.

[2] https://cleanpower.org/news/40-organizations-call-on-congress-to-include-critical-transmission-funding-in-fy-2024-budget/

[USA] BLM gives final approval for $3B TransWest Express transmission project

On April 11, 2023, the Bureau of Land Management (BLM) gave final approval, allowing for construction to begin on the TransWest Express transmission project. The BLM started reviewing the project in 2008.[1] The $3 billion transmission project is designed to deliver 3,000 MW of onshore wind generation from Wyoming to California and the Southwest. The 732-mile, bi-directional TransWest Express project is slated to run from a 600-turbine wind farm in Wyoming’s Carbon County to the Eldorado substation in southern Nevada in three segments. The project includes a 3,000-MW direct current (DC) segment between Wyoming and Utah and two 1,500-MW alternating current (AC) segments from Utah to the south of Las Vegas, NV. The project is being developed by TransWest Express LLC, a subsidiary of the Anschutz Corp. TransWest expects the first stage of its project will be completed in 2027. The full 3,000 MW line is expected to be completed by the end of 2028.

[1] https://www.transwestexpress.net/news/docs/BLM-Notice-to-Proceed-041123.pdf

[USA] ACORE Report: More transmission would have prevented winter outages

According to a report released by the American Council on Renewable Energy (ACORE) on February 8, 2023, adding 1 GW of transmission capacity during Winter Storm Elliott could have saved electricity consumers nearly $100 million over the course of the five-day storm.[1] The report, titled The Value of Transmission During Winter Storm Elliott, analyses the benefits more transmission could have provided during Winter Storm Elliot, which caused record winter electricity demand and rolling blackouts across much of the Central and Eastern U.S. in December 2022. About 1.7 million service disruptions occurred during the peak of Winter Storm Elliott. The report found that congested power lines prevented the region from importing lower-cost electricity when energy use spiked during Winter Storm Elliott. The ACORE report also found that additional transmission into the Duke/Progress utility area in the Carolinas and the Tennessee Valley Authority (TVA) region would have yielded savings of $85 million and $95 million, respectively. In addition, a 1 GW transmission line between the Electric Reliability Council of Texas (ERCOT) and TVA would have also provided $1 billion in savings to Texans during Winter Storm Uri in February 2021.

[1] https://acore.org/wp-content/uploads/2023/02/ACORE-The-Value-of-Transmission-During-Winter-Storm-Elliott.pdf

[USA] Report: Immediate transmission planning for offshore wind could save up to $20 billion

According to a Brattle Group report released on January 24, 2023, federal agencies, states, and grid operators must begin collaborative planning to identify cost-effective transmission solutions to bring offshore power online.[1] The report, titled The Benefit and Urgency of Planned Offshore Transmission, finds that starting a collaborative planning process immediately will reduce costs, reduce environmental and community impacts, increase grid reliability, and help achieve climate and clean energy goals. Leveraging existing studies in the United States and Europe, the study estimates that the benefits of proactive transmission planning for the potential 100 GW of U.S. offshore wind generation developments over the next 2-3 decades include at least $20 billion in transmission cost savings; 60-70% fewer shore crossings and necessary onshore transmissions upgrades; and 50% fewer miles of marine transmission cable installations. Proactive planning would also result in more competition, increased consumer savings, enhanced reliability and resilience, and more investments in the local clean energy economy.

The report comes as the Biden administration has set a 2030 goal of 30 GW of offshore wind deployment as a milestone to 110 GW by 2050. 11 coastal states have already set procurement targets, with figures exceeding 50 GW through 2035 and more than 75 GW by 2045. However, it can take at least a decade to plan and build major new transmission lines as a result of current processes. Because of this, the report urged working immediately to standardize offshore transmission technologies, improve existing planning processes, utilize federal support and funding, and coordinate cross-state. The report was commissioned by industry stakeholders, including the American Clean Power Association (ACP), American Council on Renewable Energy (ACORE), Clean Air Task Force (CATF), GridLab, and the Natural Resources Defense Council (NRDC).

[1] https://cleanpower.org/resources/the-benefit-and-urgency-of-planned-offshore-transmission/

[USA] Report: PJM interconnection costs have grown rapidly

On January 19, 2023, the Lawrence Berkeley National Laboratory (LBNL) released a report analyzing interconnection costs in the PJM Interconnection[1] territory.[2] The report found that interconnection costs have substantially increased in parallel with the tremendous growth of PJM’s interconnection queue in recent years. At the end of 2021, PJM had 259 GW of generation and storage capacity actively seeking grid interconnection, nearly twice as large as PJM’s peak load in recent years (~155 GW). Capacity in the queue includes solar (116 GW), standalone battery storage (42 GW), solar-battery hybrids (32 GW), and wind (39 GW). 2021’s active queue increased by 240% compared to year-end 2019. PJM reformed its interconnection process in 2022 due to the substantial growth of interconnection requests, along with lengthy study timelines and high project withdrawal rates. The ISO adopted a “first-ready, first-served” cluster study approach.

LBNL found that PJM interconnection costs have grown across the board. For example, mean costs for active projects[3] have grown from $29/kW to $240/kW (2017-2019 vs. 2020-2022. The main driver behind these increases has been broader network upgrade costs, which have risen sharply since 2019. Notably, average interconnection costs have been significantly lower for natural gas ($24/kW) than for storage ($335/kW), solar ($253/kW), or wind ($136/kW for onshore, $385/kW for offshore). The PJM brief is the second in a series analyzing interconnection costs in wholesale electricity markets. LBNL released an October 2022 study about the Midcontinent Independent System Operator (MISO) containing similar findings. LBNL will publish analyses of New York ISO (NYISO), ISO New England (ISO-NE), and Southern Power Pool (SPP) in the coming months.

[1] PJM serves all or parts of serving all or parts of Delaware, Illinois, Indiana, Kentucky, Maryland, Michigan, New Jersey, North Carolina, Ohio, Pennsylvania, Tennessee, Virginia, West Virginia, and the District of Columbia.

[2] https://emp.lbl.gov/news/pjm-data-show-substantial-increases

[3] Active projects refers to projects working through the interconnection process.

[USA] FERC approves PJM’s first-ready, first-served plan to address transmission queue

On November 29, 2022, the Federal Energy Regulatory Commission (FERC) approved PJM Interconnection’s plan to move to a “first-ready, first-served” interconnection review process that groups proposals and assigns upgrade costs in clusters.[1] According to PJM, the largest grid operator in the U.S., the plan is a response to the huge influx of interconnection requests over the last few years within its footprint. The grid operator had 2,700 projects in its interconnection queue, representing more than 250 GW. The proposed reforms aim to speed up the interconnection process by allowing projects that are more ready to be processed before other more speculative projects. Speculative projects that withdraw late in the review process can create delays, creating a need to redo the review process. PJM’s plan was widely supported in an 18-month stakeholder development process.

In its decision, FERC said the reforms should provide PJM the ability to reduce its interconnection backlog more quickly than possible under its current rules and will speed the review of new interconnection requests. Under the new plan, PJM won’t review new interconnection requests until early 2026 while it addresses its pending backlog of interconnection requests. The plan also includes a transition phase that will prioritize about half the pending projects, including a “fast-lane” process for projects to help clear the existing backlog. PJM expects to start the transition phase in early 2023.

[1] https://insidelines.pjm.com/ferc-approves-interconnection-process-reform-plan/

[USA] PPL and Elia Group announce partnership to propose solutions to integrate offshore wind into New England grid

According to an October 24, 2022, press release, PPL Corp. and Elia Group have agreed to propose transmission solutions to efficiently integrate future offshore wind capacity into New England’s onshore grid.[1]  The two companies signed a memorandum of understanding (MOU) to work together to develop, build, and operate transmission assets. The partnership combines PPL’s experience in building and operating large-scale onshore transmission through its PPL Translink subsidiary with Elia Group’s track record in building and operating offshore transmission, including high-voltage direct current (HVDC) networks, through its WindGrid subsidiary. Later in October 2022, PPL and Windgrid plan to jointly respond to a September 2022 request for information (RFI) issued by five New England states[2], which seeks input on the transmission system changes and upgrades needed to integrate future renewable energy resources into their grids.

Through its subsidiaries in Belgium and Germany, Elia Group has connected 14 wind farms (3,500 MW by the end of 2022) to its onshore grid. It is also currently operating three HVDC subsea cable interconnectors. In addition, the company is developing the world’s first energy islands that will link wind farms and HVDC interconnectors to multiple European countries. Overall, the company’s transmission system has a reliability rate of 99.99%. For its part, PPL has invested more than $9 billion in transmission in the United States over the past decade.

[1] https://pplweb.mediaroom.com/2022-10-24-PPL-and-Elia-Group-subsidiaries-announce-agreement-to-develop-and-propose-innovative-transmission-solutions-to-connect-future-offshore-wind-capacity-to-onshore-grid-in-New-England

[2] Massachusetts, Connecticut, Rhode Island, Maine, and New Hampshire

[USA] New England states launch effort to connect offshore wind to the grid

On September 1, 2022, five New England states—Massachusetts, New Hampshire, Connecticut, Rhode Island, and Maine— launched an effort to help connect offshore wind projects and other carbon-free resources to the power grid over the next three decades.[1] In a joint request for information (RFI), the states requested comments on how to limit the costs of transmission for consumers, where new power lines should be located, and how environmental justice and equity impacts should be considered. The states hope to speed up the process for building new power lines and related infrastructure and to make use of funding programs established by the Bipartisan Infrastructure Law (BIL). Although Vermont, the only state in New England without a coastline, is not participating in the joint initiative, it will remain an observer and supports the objectives of the initiative.

Currently, the New England states have about 8.3 GW of offshore wind under construction or in the permitting process. However, the RFI cited a 2020 study conducted by ISO New England (ISO-NE) that indicated the region could only add up to 5.8 GW of offshore wind without major new transmission reinforcements on land. “Any significant quantity of offshore wind beyond that amount may not be able to interconnect into the regional grid without significant transmission upgrades,” the RFI said. “In addition, the most easily accessible interconnection points along the southern New England coast are already at or beyond their full capacity with those offshore wind projects under contract or review.” Comments on the RFI are due October 14, 2022.

[1] https://newenglandenergyvision.files.wordpress.com/2022/09/transmission-rfi-notice-of-proceeding-and-scoping.pdf

[USA] Maine Supreme Court rules in favor of Avangrid’s transmission project

In a unanimous decision, the Maine Supreme Court ruled on August 30, 2022, that the November 2021 Maine referendum blocking the New England Clean Energy Connect (NECEC) is likely unconstitutional.[1] The NECEC is a $1 billion, 145-mile electric transmission line project that will carry Canadian hydropower through Maine to Massachusetts. Project developer Central Maine Power Co. (CMP), a subsidiary of Avangrid, had to stop construction of the transmission line project after 59% of Maine voters approved a referendum blocking the project in November 2021. The law bans major transmission lines from the area where the project would be built and requires two-thirds legislative approval for projects on state land retroactive to 2014.

In its decision in NECEC Transmission LLC, et al., v. Bureau of Parks and Lands, et al., the court said the ballot violated the developers’ constitutional rights by retroactively imposing new requirements on a permit previously issued by the Maine Public Utilities Commission. If Avangrid can show that it engaged in substantial construction on NECEC before voters approved the ballot, it can move ahead with the project. The Maine Supreme Court remanded the case back to a lower court to decide whether Avangrid meets the conditions for having the right to build the project.

[1] https://law.justia.com/cases/maine/supreme-court/2022/2022-me-48.html

[USA] More than 30 organizations urge FERC to create a strong transmission planning rule

On August 16, 2022, a day before the comment deadline on the Federal Energy Regulatory Commission’s (FERC) Notice of Proposed Rulemaking (NOPR) on Regional Transmission Planning and Cost Allocation and Generator Interconnection, more than 30 organizations wrote a letter in support of a strong new planning rule that helps strengthen the nation’s transmission network.[1] The NOPR, released in April 2022, proposed reforming both FERC’s Open Access Transmission Tariff and Large Generator Interconnection Agreement to fix what the commission saw as deficiencies in existing regional transmission planning and cost allocation requirements. As written, the NOPR would require public utility transmission providers to undertake long-term regional transmission planning and consider dynamic line ratings and advanced power flow control devices more.

Organizations that signed the letter include utilities, consumers, nongovernmental organizations, think tanks, labor groups, national trade associations, equipment providers, clean energy buyers, transmission developers, builders and operators, independent power producers, and environmental organizations. The organizations emphasized that a better planned and integrated power system would help both in terms of consumer savings and reliability of service. Additionally, greater national rulemaking could trickle down into helpful regionalization. “The ability to move power across large areas helps deliver low-cost renewable energy, which is what consumers, utilities, and states are procuring,” the letter said.

[1] https://acore.org/macro-grid-initiative-letter-under-ferc-transmission-nopr/

[USA] MISO board approves $10.3 billion portfolio of long-range transmission projects

On July 25, 2022, the Midcontinent Independent System Operator (MISO) Board of Directors announced that they had approved a portfolio of long-range transmission projects for the Midwest subregion.[1] The $10.3 billion investment includes 18 transmission projects. According to MISO, this Tranche 1 portfolio is the first of four planned tranches in its Long-Range Transmission Planning (LRTP) process. The grid operator plans to follow this portfolio with another set of transmission projects for its northern and central areas, one for its southern region, and one to increase transmission capacity between its northern and southern areas. The projects are necessary to begin the integration of new generation resources outlined in MISO member and state plans as well as increase resiliency in the face of severe weather events.  

Analyses indicate that the Tranche 1 benefits will exceed costs, with a benefit-to-cost ratio of at least 2.2 for all resource zones in the grid operator's Midwest subregion. Benefits include congestion and fuel savings, avoided capital costs of local resource investment, avoided transmission investment, resource adequacy savings, avoided risk of load shed, and decarbonization. MISO used existing transmission corridors to plan this Tranche 1, which reduces the impact on local areas and communities, lowers construction costs, and shortens implementation time.

[1] https://www.misoenergy.org/about/media-center/miso-board-approves-$10.3-in-transmission-projects/

[USA] PJM proposes “first-ready, first-served” approach to clear interconnection backlog

On June 14, 2022, PJM Interconnection[1] filed with the Federal Energy Regulatory Commission (FERC) to overhaul its interconnection study process to a “first-ready, first-served” approach that reviews proposals and assigns upgrade costs in clusters.[2]  According to PJM, the largest grid operator in the U.S., the proposed changes are a response to the huge influx of interconnection requests over the last few years within its footprint. The grid operator had 2,700 projects in its interconnection queue, representing more than 250 GW, as of May 10, 2022. The proposed reforms aim to speed up the interconnection process by allowing projects that are more commercial ready to be processed before other more speculative projects. Speculative projects that withdraw late in the review process can create delays, creating a need to redo the review process. PJM’s proposal would conduct system impact studies and cost allocation for groups of projects or clusters rather than project-by-project. PJM’s proposal was widely supported in an 18-month stakeholder development process. If approved by FERC, PJM expects to review interconnection applications filed after October 1, 2021, starting in early 2026. PJM requested that FERC approve the proposal by October 3, 2022.

[1] PJM serves all or parts of Delaware, Illinois, Indiana, Kentucky, Maryland, Michigan, New Jersey, North Carolina, Ohio, Pennsylvania, Tennessee, Virginia, West Virginia, and the District of Columbia.

[2] https://elibrary.ferc.gov/eLibrary/filedownload?fileid=f3f74b1d-7352-c120-9c75-81631eb00000

[USA] BLM approves transmission line for renewables in the West

On May 26, 2022, the Bureau of Land Management (BLM) announced that it had issued the final approval for construction of the 416-mile Energy Gateway South Transmission line that will start near Medicine Bow in southeastern Wyoming, travel through northwest Colorado, and end outside of Mona, Utah.[1] The project is a step toward the Biden administration’s efforts to modernize power infrastructure in the West and permit at least 25 GW of solar, wind, and geothermal production on public lands by 2025. The Energy Gateway South Transmission line will support about 1,325 construction jobs and help integrate 2,000 MW of new renewable energy into the grid.

The approval, issued by the BLM Wyoming State Office in partnership with BLM’s Colorado and Utah offices, authorizes PacifiCorp to begin construction of the 500kV line. PacifiCorp said construction on the line should begin in June 2022, and the line is expected to be in service by late 2024.[2] The project is part of the utility’s larger Energy Gateway Transmission Expansion, a multi-year plan to add approximately 2,000 miles of new transmission lines across the western U.S. According to the press release, BLM worked with PacifiCorp, the National Fish and Wildlife Foundation, the Wyoming Wildlife and Natural Resource Trust, federal partners, and the states of Wyoming, Colorado, and Utah to mitigate the environmental impacts caused by the construction of the line. In particular, the approach will offset impacts to the endangered Greater Sage-Grouse, lands with wilderness characteristics, and other natural resource values across all three states.

[1] https://www.blm.gov/press-release/biden-harris-administration-approves-construction-energy-gateway-south-transmission

[2] https://www.pacificorp.com/about/newsroom/news-releases/utility-regulators-grant-certificates.html

[USA] MISO proposes assigning incumbent utilities certain transmission projects

Under a proposal filed with the Federal Energy Regulatory Commission (FERC) on May 25, 2022, by the Midcontinent Independent System Operator (MISO), incumbent utilities in the grid operator’s footprint could build certain transmission projects without a competitive bidding process.[1] The grid operator proposes that if at least 80% of a project’s costs come from upgrades to the existing system, MISO will assign the transmission project to incumbent utilities. According to MISO. FERC approved a similar proposal from Southwest Power Pool (SPP) in 2014 that included an 80% cost threshold.

MISO claims that the revision would facilitate its Long Range Transmission Plan (LRTP) initiative. The MISO board is expected to approve the first of the LRTP projects (LRTP Tranche 1) on July 25, 2022. LRTP Tranche 1 is a set of transmission lines that could support about 53 GW of wind, solar, hybrid, and stand-alone battery projects. MISO said that the LRTP plan could be delayed if projects that involve upgrading existing facilities are subject to a competitive bidding process. Challenges include designing, permitting, and maintaining the facilities. According to the grid operator, the proposal still allows “significant opportunity” for competitive transmission development in the pending buildout. Based on a preliminary review, some “short segments” and conductor-only projects would likely be open to competitive bidding. In the proposal, MISO requested that the commission approve the proposal by July 25, 2022.

[1] https://elibrary.ferc.gov/eLibrary/filedownload?fileid=2dc38a07-70f0-cb85-9c76-80fcc3900000