Delaware Division of the
Public Advocate

Energy Users to be Allocated Almost 100% of Upgrade Costs

Date Posted: Tuesday, August 4th, 2015

A recent News Journal article discusses the potential for all energy users within the Delmarva Power Transmission zone, which includes the entire state of Delaware and portions of Maryland, to be allocated almost 100% of the costs of transmission upgrades approved by PJM Interconnection, LLC (“PJM”) to remedy electric stability issues at Artificial Island in New Jersey. PJM is the Regional Transmission Organization serving thirteen states and the District of Columbia and is regulated by the Federal Energy Regulatory Commission (“FERC”). Because of the potential impacts on customers’ electric bills, the DPA has been actively monitoring this issue (see our July 2014 letter regarding the PJM Staff project recommendation) and has engaged in discussions with PJM Staff and the owners of the transmission project approved by the PJM Board. On May 27, 2015, the DPA sent a letter to the PJM Board urging it to consider the obvious inequity resulting from the proposed cost allocation methodology. This situation is unique, and the DPA is convinced that PJM has the authority to take extenuating issues into account; we are currently considering all options available, including legal action, to obtain a more reasonable cost allocation for the Artificial Island upgrades.

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