I guess there's a reason Allegheny Energy pays CEO Paul Evanson the big bucks ($67M per year) -- the old codger is psychic! Or maybe the reality is that the fix has always been in for PJM to do their math backwards and come up with a problem for the answer they are given by Evanson and his counter-codger at AEP. He knew over a month before PJM's latest RTEP was released what PATH's new inservice date would be. You be the judge...
From Allegheny Energy's May 5th Q1 2010 Earnings Call:
Paul J. Evanson - Chairman, President and CEO: Well, the delay in PATH – well the determination of when PATH is needed in any particular year is done by PJM and have a separate transmission group, that that’s really what they focus on. And what they focus on really first foremost and almost in every way is reliability and when the violations of their reliability standards. So they look at that at the earliest movement and try to make sure it gets in before that movement is met. And the economic conditions changed dramatically from two years or so ago, two and a half years ago when it was first proposed, which has led to the delay. But we are looking forward to what their conclusion will be in June of this year. My own guess, my own personal guess is they’ll probably see a need in maybe 2015 or perhaps 2016, that’s my guess. That has to be on their very thorough, very complex analysis.
From Allegheny Energy's May 5th Q1 2010 Earnings Call:
Paul J. Evanson - Chairman, President and CEO: Well, the delay in PATH – well the determination of when PATH is needed in any particular year is done by PJM and have a separate transmission group, that that’s really what they focus on. And what they focus on really first foremost and almost in every way is reliability and when the violations of their reliability standards. So they look at that at the earliest movement and try to make sure it gets in before that movement is met. And the economic conditions changed dramatically from two years or so ago, two and a half years ago when it was first proposed, which has led to the delay. But we are looking forward to what their conclusion will be in June of this year. My own guess, my own personal guess is they’ll probably see a need in maybe 2015 or perhaps 2016, that’s my guess. That has to be on their very thorough, very complex analysis.
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