The Public Service Commissions of both Delaware and Maryland have filed a complaint at FERC over PJM's new transmission cost allocation process, specifically the cost allocation of PJM's Artificial Island transmission project. Under PJM's cost allocation rules, ratepayers of Delmarva Power in Maryland and Delaware would pay nearly 90% of the cost of the project, which is intended to improve transmission from the Salem/Hope Creek nuke in New Jersey. However, Delmarva customers will receive only 10% of the benefits flowing from the project.
Whoopsie, PJM! Your formulas still don't work! Didn't FERC's Order No. 1000 determine that costs would be commensurate with benefits? And didn't the 7th Circuit remand your prior cost allocation method TWICE because PJM and FERC couldn't show a correlation between benefits and costs?
It seems that PJM and FERC still haven't gotten it right on cost allocation. And the legal battle is just beginning. This could muck up PJM's cost allocation process for the transmission it orders up for years! As a result... transmission won't get built. Nice going, knuckleheads!
We have yet to see a massive transmission build out intended to ship renewables thousands of miles in an attempt to subvert state planning for compliance with the Clean Power Plan. Expect problems there, too! After all, not every state is going to receive the same kind of benefits from long-distance transmission that passes through in an attempt to meet the CPP goals of a different state.
I guess that's what happens when "regional" and federal interests attempt to overrun state regulators. This complaint is going to be interesting and eat up a lot of ink. Woo Hoo!
Whoopsie, PJM! Your formulas still don't work! Didn't FERC's Order No. 1000 determine that costs would be commensurate with benefits? And didn't the 7th Circuit remand your prior cost allocation method TWICE because PJM and FERC couldn't show a correlation between benefits and costs?
It seems that PJM and FERC still haven't gotten it right on cost allocation. And the legal battle is just beginning. This could muck up PJM's cost allocation process for the transmission it orders up for years! As a result... transmission won't get built. Nice going, knuckleheads!
We have yet to see a massive transmission build out intended to ship renewables thousands of miles in an attempt to subvert state planning for compliance with the Clean Power Plan. Expect problems there, too! After all, not every state is going to receive the same kind of benefits from long-distance transmission that passes through in an attempt to meet the CPP goals of a different state.
I guess that's what happens when "regional" and federal interests attempt to overrun state regulators. This complaint is going to be interesting and eat up a lot of ink. Woo Hoo!
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