PJM Aims for $6 Billion in Transmission Projects Across Eastern States

The board of managers for PJM Interconnection approved a set of about $5.9 billion in transmission projects across Indiana, West Virginia, Virginia, Ohio and Maryland, according to press releases from PJM and its utility partners.

The projects should be in service by 2029, according to Norristown, Pennsylvania-based PJM, which is part of the Eastern Interconnection and serves most of Pennsylvania, New Jersey, Ohio, Delaware, Maryland, and Virginia, as well as parts of Illinois, Kentucky, North Carolina, plus the District of Columbia.

The projects were picked through the regional transmission expansion plan (RTEP) process, through which PJM accepts submissions for projects to address specific transmission needs before choosing which ones are the best fit after a reviews process.

The companies will develop the projects through the recently formed Valley Link Transmission Company LLC joint venture. The projects are in the early stages of development and do not have a firm time frame yet for permitting, regulatory approvals and construction.

In the next steps, the companies will develop project details, including assessing routes and conducting environmental studies.

Of the $1.7 billion of investments, approximately $1.1 billion will be advanced through American Electric Power’s 85%-owned merchant transmission unit Transource Energy as part of a joint venture with Dominion Energy and FirstEnergy Transmission, LLC. Valley Link Transmission was selected to develop several competitive transmission projects, including two 765 kilovolt transmission lines in West Virginia, Virginia and Maryland.

AEP has $600 million in projects approved for AEP’s transmission companies and operating companies in Indiana, Ohio and Virginia.

Projects include:

• Building approximately 260 miles of 765-kilovolt (kV) transmission line and two substations between Putnam County, West Virginia, and Frederick County, Maryland.
• Building approximately 155 miles of 765-kV transmission line and a substation between Campbell County, Virginia, and Fauquier County, Virginia.
• Building a new substation in Caroline County, Virginia.

“Energy demand is growing at a pace our nation has not seen in decades. Building or upgrading our infrastructure to continue delivering reliable power is essential to fueling economic growth and meeting the needs of our customers,” said Bill Fehrman, AEP president and chief executive officer. “Our experience building the largest transmission system in North America made us an ideal candidate to help address the needs that PJM identified during their planning process. Our teams are ready to get to work engaging with our communities and stakeholders and are excited about being part of powering additional economic development opportunities in the region.”

"By leveraging the collective expertise of our three companies, we have the opportunity to build robust transmission facilities that will address documented reliability concerns on the regional power grid," said Mark Mroczynski, President, Transmission at FirstEnergy. "While we're in the very early stages, we look forward to engaging with communities and stakeholders in the months ahead to discuss the need for these projects and listen to the ideas and concerns of our customers."

"These projects are essential for the economic vitality of our region, the reliability of our grid and the everyday lives of our customers," said Ed Baine, President of Utility Operations and Dominion Energy Virginia. "These are comprehensive solutions needed to reliably serve the growing needs of our customers, and we thank PJM for their thorough review."

"AEP has decades of experience with projects of the size and scope needed to serve the unprecedented growth in energy demand," said Bob Bradish, Senior Vice President, Regulated Infrastructure Investment Planning for AEP. "This joint venture is a unique solution to addressing the needs of our customers and ensuring long-term reliability and continued economic growth opportunities in the region."

The PJM board also approved a revised cost estimate for the Brandon Shores Deactivation Project. The total cost has increased from $738.83 million to $1,513.96 million. The scope of the project has not changed, according to PJM.

As part of board approval, three baseline projects were canceled in the ATSI, JCPL and AEP zones, removing $48.7 million from the RTEP. The board approved two other scope changes as well for two projects with a net increase of approximately $7.8 million.

FirstEnergy Corp.’s electric distribution companies form one of the nation's largest investor-owned electric systems, serving more than six million customers in Ohio, Pennsylvania, New Jersey, West Virginia, Maryland and New York. The company's transmission subsidiaries, which include FirstEnergy Transmission LLC (FET), operate about 24,000 miles of transmission lines that connect the Midwest and Mid-Atlantic regions. 

Dominion Energy, headquartered in Richmond, Virginia, provides regulated electricity service to 3.6 million homes and businesses in Virginia, North Carolina, and South Carolina, and regulated natural gas service to 500,000 customers in South Carolina.

AEP’s nearly 16,000 employees operate and maintain the nation's largest electric transmission system with 40,000-line miles, along with more than 225,000 miles of distribution lines to deliver energy to 5.6 million customers in 11 states. AEP’s competitive transmission affiliate is Transource Energy, LLC. AEP also is one of the nation's largest electricity producers with nearly 29,000 MW of generating capacity.