The Federal Energy Regulatory Commission (FERC) has rejected a proposal from PJM Interconnection, one of the United States' largest regional transmission organizations, to alter its transmission planning protocol. The decision represents a significant victory for state regulators who had expressed strong opposition to the changes, arguing that they would undermine states' authority in shaping the future of energy infrastructure.
The Proposed Changes
PJM’s proposal aimed to adjust its approach to regional transmission planning, focusing on projects addressing emerging reliability and economic challenges. This initiative was part of its effort to modernize the grid, integrate renewable energy sources, and ensure long-term system reliability.
Key features of the proposal included:
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Centralization of Decision-Making: Shifting more authority for project selection and prioritization from state regulators to PJM’s internal planning process.
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Expanded Criteria: Introducing new evaluation criteria for determining the necessity of transmission projects, emphasizing regional benefits over state-specific considerations.
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Cost Allocation Adjustments: Modifying...