The Board of Directors of PJM Interconnection authorized dozens of electric transmission improvements on October 15, which are expected to save electricity customers in the region a cumulative $815 million in congestion costs – as well as millions more dollars in reduced load payments and production costs – through 2030.
Specifically, the system enhancements will include 11 market efficiency projects, which are expected to cost approximately $59 million and to be executed by the owners of the transmission facilities. PJM anticipates that, for every dollar invested in the project, savings of $15 will be realized.
In all, there were 93 proposals to address the market efficiency window for bids – 58 from non-incumbent transmission developers.
“By utilizing a more open process, [we were able to consider] a greater number of market efficiency projects,” commented PJM CEO Mike Kormos. “The increased participation has led to significantly more proposals being accepted, providing substantial savings.”
Although no major new transmission lines were among the approved projects, the PJM Board also approved several smaller transmission projects that would address grid reliability concerns.
All projects are now incorporated into the PJM Regional Transmission Expansion Plan. The plan identifies transmission system additions and improvements needed to keep electricity flowing to the millions of people throughout PJM’s region.