PJM Board Approves Transmission Projects; $59 Million Investment For Market Efficiency To Save $815 Million
VALLEY FORGE, Pa., Oct. 15, 2015 /PRNewswire/ -- The PJM Interconnection Board today authorized dozens of electric transmission improvements, including a record number that address market efficiency issues. The market efficiency changes are estimated to save electricity consumers $815 million in transmission congestion costs and additional millions in reduced load payments and production costs.
The 11 authorized market efficiency projects are expected to cost approximately $59 million and will be constructed by the owners of the transmission facilities. The approved market efficiency projects will produce savings of $15 for every dollar invested.
The savings will be realized over a 15-year period. A market efficiency project is driven by the economic benefits it can deliver through lower congestion costs, production costs and reduced load payments.
"By utilizing a more open process, a greater number of market efficiency projects were offered for consideration," said Mike Kormos, executive vice president and Chief Operations Officer. "The increased participation has led to significantly more proposals being accepted, providing substantial savings."
Although no new major new lines were among the approved projects, the PJM Board also approved several smaller transmission projects to address grid reliability concerns.
In all, there were 93 proposals to address the market efficiency window for bids – 58 from non-incumbent transmission developers.
All projects are now incorporated into the PJM Regional Transmission Expansion Plan. The transmission projects approved by the board were detailed in a recent Transmission Expansion Advisory Committee meeting.
PJM Interconnection, founded in 1927, ensures the reliability of the high-voltage electric power system serving 61 million people in 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. PJM coordinates and directs the operation of the region's transmission grid, which includes 62,556 miles of transmission lines; administers a competitive wholesale electricity market; and plans regional transmission expansion improvements to maintain grid reliability and relieve congestion. Visit PJM at www.pjm.com.
SOURCE PJM Interconnection
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