ALLENTOWN, Pa., Oct. 28, 2015 /PRNewswire/ -- PPL Electric Utilities Corporation, a subsidiary of PPL Corporation (NYSE: PPL), has begun the application and approval process for the first segment of Project Compass – a major new transmission line proposed by PPL Electric Utilities to provide significant benefits for consumers.
The first segment is a 95-mile, $500-million to $600-million line between Blakely, Pa., and Ramapo, N.Y. The proposed 345-kilovolt link between the PJM Interconnection and the New York Independent System Operator (NYISO) is intended to make the electric grid more reliable and secure for people throughout the region, and to provide an estimated savings of at least $200 million per year for New York consumers by reducing transmission congestion.
PPL Electric Utilities filed an interconnection application with NYISO Oct. 27. Additional approvals are needed from the Pennsylvania Public Utility Commission, the New York Public Service Commission, PJM and other agencies.
"This line would provide an important addition to the nation's transmission infrastructure," said Gregory N. Dudkin, president of PPL Electric Utilities. He noted that the company has extensive experience planning, obtaining approval for and building major regional transmission lines, including the recently energized Susquehanna-Roseland line and the nearly complete Northeast-Pocono Reliability Project.
Among the benefits of the first segment of Project Compass are:
- Lower electric bills: PPL Electric Utilities estimates that electric customers in New York could save at least $200 million per year because the power line will reduce transmission congestion and lower the wholesale price for electricity.
- Better electric service: The line is designed to make the electric grid more reliable and more secure for people throughout the region.
- New jobs and economic development: A multi-year construction period for the power line, if approved, would create jobs and provide benefits for service businesses and the regional economy.
The exact route of the first segment of Project Compass has not yet been determined, and must be approved by regulators in both states. PPL Electric Utilities will consider public input and work carefully with all appropriate regulators and environmental permitting agencies to find the best route. The current schedule calls for the first segment to be in service by 2023.
While the first segment can stand alone as a valuable grid improvement, PPL Electric Utilities continues to refine the overall plan for the rest of Project Compass. As currently envisioned, the full project would run about 475 miles from western Pennsylvania into southeastern New York. The cost of Project Compass is estimated at $3 billion to $4 billion.
Capital expenditures for Project Compass are not included in PPL Corporation's most recent capital expenditure projections.
PPL Electric Utilities provides electric delivery service to more than 1.4 million homes and businesses in Pennsylvania and ranks among the best utility companies in the country for customer service and reliability. With 2,300 employees, PPL Electric Utilities is a major employer in the communities it serves. It is a subsidiary of PPL Corporation (NYSE: PPL). For more information, visit www.pplelectric.com.
Note to Editors: Visit our media website at www.pplnewsroom.com for additional news and background about PPL Corporation.
Statements contained in this news release, including statements with respect to future earnings, cash flows, financing, regulation and corporate strategy, are "forward-looking statements" within the meaning of the federal securities laws. Although PPL Corporation believes that the expectations and assumptions reflected in these forward-looking statements are reasonable, these statements are subject to a number of risks and uncertainties, and actual results may differ materially from the results discussed in the statements. The following are among the important factors that could cause actual results to differ materially from the forward-looking statements: market demand and prices for energy, capacity and fuel; weather conditions affecting customer energy usage and operating costs; competition in power markets; the effect of any business or industry restructuring; the profitability and liquidity of PPL Corporation and its subsidiaries; new accounting requirements or new interpretations or applications of existing requirements; operating performance of generating plants and other facilities; the length of scheduled and unscheduled outages at our generating plants; environmental conditions and requirements and the related costs of compliance, including environmental capital expenditures and emission allowance and other expenses; system conditions and operating costs; development of new projects, markets and technologies; performance of new ventures; asset or business acquisitions and dispositions; any impact of hurricanes or other severe weather on our business, including any impact on fuel prices; receipt of necessary government permits, approvals, rate relief and regulatory cost recovery; capital market conditions and decisions regarding capital structure; the impact of state, federal or foreign investigations applicable to PPL Corporation and its subsidiaries; the outcome of litigation against PPL Corporation and its subsidiaries; stock price performance; the market prices of equity securities and the impact on pension income and resultant cash funding requirements for defined benefit pension plans; the securities and credit ratings of PPL Corporation and its subsidiaries; political, regulatory or economic conditions in states, regions or countries where PPL Corporation or its subsidiaries conduct business, including any potential effects of threatened or actual terrorism or war or other hostilities; foreign exchange rates; new state, federal or foreign legislation, including new tax legislation; and the commitments and liabilities of PPL Corporation and its subsidiaries. Any such forward-looking statements should be considered in light of such important factors and in conjunction with PPL Corporation's Form 10-K and other reports on file with the Securities and Exchange Commission.
Paul Wirth, 610-774-5532
PPL Electric Utilities
SOURCE PPL Electric Utilities