Legalectric

PJM’s Plan for Delaware

Sure hope so — they’ve got it coming.  Cost apportionment is a big issue, and for PJM, well, they’d taken their cost apportionment dream to FERC, got the FERC rubber stamp, but it seems they’ve not done a good job of it, according to the Federal Court — that’s old news:

Illinois Commerce Commission v. FERC August 6, 2009

Fast forward to today — turns out Delaware’s Gov. Markell is objecting to costs assessed to Delaware ratepayers, (though I’m not seeing any objection to the project itself coming out of Delaware).  DOH!  He’d better, this project does nothing for Delaware.

Here’s the PJM Planning doc that tells all:

PJM White Paper Artificial Island Project

Note on the first page the statement of need, of why this project is wanted — this is really important:

PJM specified that solution proposals must improve stability margins, reduce Artificial Island MVAR output requirements and address high voltage reliability issues.

So let me get this straight — they’re having stability and reliability issues and PSEG wants to reduce Artificial Island MVAR output requirements, and want to charge Delaware ratepayers for this?  PUH-LEEZE… This is a benefit to PSEG, not Delmarva…

And look what our big-coal friends at ODEC have to say:

ODEC letter regarding Artificial Island 7-29-2015

This project taps into the new line that was built not long ago:

Delaware has no regulation of transmission need or siting — so utilities can pretty much do whatever they want.  Further, it’s a FERC tariff, so the state doesn’t have anything to say about it going into the rates, and cost apportionment.  Great, just great.  So now Markell is objecting?  It’s a little late…

Delaware needs legislation — legislation like a “Power Plant Siting Act” and a legislative requirement of a need determination for whatever infrastructure they think they want.  They need legislation specifying that only Delaware utilities can own and operate transmission in Delaware (see House Bill 387 from the 2014 session).  Here’s what House Bill 387 would have done (It would have been an effective good start, protective of Delaware!), establish that a utility wanting to construct and operate transmission demonstrate NEED!  Here’s the wording, though it would require quite a bit more, and some solid rules, to be effective:

(5)Public utility electric transmission service providers must have a certificate of public convenience and necessity for the construction and operation of any new electric transmission lines operating at 100KV or greater and located in the State or offshore waters and integrated with the State electric transmission grid.In granting such certificate, the Commission shall consider:

a.the need for the proposed transmission line;

b.the impact on the reliability of the transmission grid

c.the long term viability of the public utility proposing the line;

d.the technical engineering and operating expertise of the public utility;

e.the technology and design proposed for the new transmission line; and

f.the economic and safety impact of the proposed transmission line.

Here’s the report about this PJM approval from Jeff Montgomery, News Journal:

Disputed cost-shares remain in plan for new power line

Note this snippet:

PJM officials said regional and federal rules and precedents obliged the organization to assign 99.99 percent of costs to Delmarva’s transmission zone, mostly in Delaware and Maryland.

The total includes the cost of a $146 million power line installation under the Delaware River and $68 million worth of transformer and substation work by Public Service Electric and Gas at the Artificial Island nuclear complex along the Delaware River southeast of Port Penn.

The Delaware Public Service Commission estimated that transmission costs would increase by about 25 percent in Delaware because of the plan.

“For the average residential consumer, monthly electric bills could increase by several dollars. For the average business, the increase may be more significant,” Markell said in his objection. “Some of our heaviest users could see increases of hundreds of thousands of dollars.”

And here’s the schedule for this project going forward from the PJM Board meeting yesterday:

Seems there’s an opportunity before the FERC ALJ.  But before then?  What is Delaware going to do?  Well, take a look at what Illinois did when it didn’t appreciate the FERC Cost Apportionment scheme — they sued FERC and won, based on the notion that if they weren’t benefitting, they shouldn’t be the ones paying:

Illinois Commerce Commission v. FERC August 6, 2009

The FERC Cost Apportionment scheme was remanded, and it’s in settlement negotiations right now.  What is Delaware doing in that docket?  To review the public postings, go HERE and search for FERC Docket EL05-121.  The next settlement conference is Thursday, August 6, 2015, starting at 10:15 a.m. in a hearing room at FERC HQ.  Delaware is represented in this, at least there are Delaware PSC staff listed on the service list, Janis Dillard, John Farber, and Robert Howatt.  So what are they doing about this cost apportionment scheme?  Seems this settlement conference is just the place for raising a stink about the PJM cost apportionment scheme, to raise issues of “benefits” and “cause cost, pay” arguments.  Are they showing up and speaking up for Delaware?