FERC Acts on Artificial Island


On November 24, the Federal Energy Regulatory Commission issued an order which accepted a PJM Tariff filing on Artificial Island, then suspended the changes for five months.

The FERC accepted the October 9 PJM filing, which responded to a complaint from the Delaware and Maryland public service commissions regarding the cost allocation for transmission.

FERC has determined that overall the current method of allocating the costs of transmission projects is just and reasonable.  In certain instances, however, the allocations led to complaints that individual results were unjust and unreasonable.

The commission is setting up a technical conference for early 2016 to explore whether an alternative cost allocation system can be established for projects which do not fit well with the FERC’s current solutions-based methodology.

PJM will be pleased to support the FERC’s process to explore alternative cost allocation methods for projects that may not fit into the current process.

The PJM Board of Managers approved the Artificial Island project on July 29.