Everyone was blindsided by the announcement last week that Franklin County, Pennsylvania, has inked a deal with Transource to drop its opposition to the Independence Energy Connection (IEC). This project was originally proposed in 2016 as a "market efficiency" project planned by regional grid operator PJM Interconnection to create a new pathway for cheap power generated in Pennsylvania to reach electric consumers in the DC-Baltimore area. The Maryland PSC approved the project in 2020 contingent upon a reconfiguration that assigned the eastern part of the project to local utilities to add to an open position on existing transmission structures. However, the Pennsylvania PUC denied Transource's application altogether in 2021. Transource has pursued appeal of the PUC's decision through the court system, first in the Pennsylvania courts, then in federal district court. The PUC then appealed the federal district court's decision, and the case is currently before the federal Third Circuit. Briefing has not yet completed, and oral argument has not yet been scheduled. This case has not been resolved one way or the other.
PJM initially "suspended" IEC in the wake of the PUC denial, putting the project on a shelf for further re-evaluation. Recently, PJM stated during its Transmission Expansion Advisory Committee (TEAC) that IEC "causes uncontrolled congestion and reliability issues." That means that the project, if built, would raise prices all over the region, which is the exact opposite of what PJM testified to during the state utility commission hearings. Last week, PJM stated that it would be making an announcement regarding the fate of the IEC at its September TEAC meeting. That meeting is open to the public, if you would like to attend and make comment.
Despite what looks like certain doom at PJM, along with a court case that has not been resolved in its favor, Transource has been busy! It announced an agreement with Franklin County to drop its opposition. The agreement was a mystery until now. It comes in the form of a partial settlement between Transource and Franklin County in the PUC case (which ended with a denial in 2021). You can read it here:
PJM initially "suspended" IEC in the wake of the PUC denial, putting the project on a shelf for further re-evaluation. Recently, PJM stated during its Transmission Expansion Advisory Committee (TEAC) that IEC "causes uncontrolled congestion and reliability issues." That means that the project, if built, would raise prices all over the region, which is the exact opposite of what PJM testified to during the state utility commission hearings. Last week, PJM stated that it would be making an announcement regarding the fate of the IEC at its September TEAC meeting. That meeting is open to the public, if you would like to attend and make comment.
Despite what looks like certain doom at PJM, along with a court case that has not been resolved in its favor, Transource has been busy! It announced an agreement with Franklin County to drop its opposition. The agreement was a mystery until now. It comes in the form of a partial settlement between Transource and Franklin County in the PUC case (which ended with a denial in 2021). You can read it here:
| transource-franklin_co. |
Why is Franklin County agreeing to drop its opposition to a PUC case that is over?
Transource PA intends to refile the IEC Project with the Commission.
Seems like Transource is trying to reconfigure this project as a reliability project. However, it is going to need PJM's approval or it won't be able to recover its costs from ratepayers. Is Transource going merchant with IEC, or is PJM going to come out in September and negate what it recently said about IEC causing uncontrolled congestion and reliability issues?
So, what does Franklin County get from this deal?
So, what does Franklin County get from this deal?
Transource PA will pay Franklin County a one-time payment of $5,000,000.00 (Five Million Dollars and No Cents) to off-set potential environmental impacts, if any, of the IEC West Project in Franklin County caused by the actions of Transource PA or its contractors. The funds may be used at Franklin County's discretion. In addition to the conditions set forth herein, this payment is conditioned upon Transource PA receiving all necessary, independent third-party permits, recommendations, or approvals otherwise required by law from the Franklin County Planning Department, Southampton Township, Greene Township, Guilford Township, Quincy Township, and Washington Township related to the IEC Project, including, if necessary, an NPDES permit, substation notification and compliance letters and driveway permits.
Transource PA shall notify Franklin County within fifteen (15) days after the line is energized and shall remit the payment required in this paragraph to Franklin County within thirty (30) days after the line is energized and placed in service.
In exchange for $5M, Franklin Co. agrees to take on all liability for environmental impacts caused by Transource or its contractors. That seems rather risky to me. What environmental impacts could Transource cause while building IEC, and how much could those cost to remediate? This is more like an insurance policy without any limit on how much Franklin Co. may have to pay out.
In addition
In addition
As part of this Settlement, Transource PA also agrees to provide an allowance of up to $4,000,000.00 (Four Million Dollars and No Cents) associated with micro-siting within the
1,000-foot corridor granted by the Commission upon approval of the IEC Project. This allowance will be used by Transource to accommodate siting needs that may be identified prior to construction.
What? Transource will allocate up to $4M of ratepayer money to micro-siting? How much does micro-siting cost? The paragraph reads like this extra $4M is an internal budgeting issue. This allowance will be used by Transource, it's not being paid to Franklin County. It is completely unclear how money can solve micro-siting issues. Micro-siting refers to making slight adjustments to the project's alignment to go around certain impediments. It can require different transmission structures, or slightly longer spans. $4M is a very small amount of money when it comes to building transmission lines. Who gets first dibs on having their micro-siting issues settled before Transource runs out of money? Will Transource pick and choose which landowners benefit?
An what about eminent domain?
An what about eminent domain?
Franklin County agrees not to oppose any of the eminent domain applications related to the IEC West Portion of the IEC Project associated with PJM Project 9A that are currently pending before the Commission. Franklin County further agrees not to oppose any eminent domain applications as may be necessary for the reconfigured East Portion of the IEC Project.
So Franklin County won't oppose any eminent domain. Not sure they really have a say in it, unless it is land owned by the County.
And what about land, or conservation easements, owned by the County?
And what about land, or conservation easements, owned by the County?
Transource will not be required to obtain from Franklin County any additional land rights associated with County property interests (e.g., including situations in which the County has rights associated with an agricultural easement) as Transource may identify.
Franklin County has agreed not to interfere with any land rights Transource wants, including the right to cross conservation easements that the county may have purchased from landowners with county taxpayer funds in the past. If you put your land in an easement thinking that it was protected, Franklin County has agreed that it is not protected from Transource.
It also contains the condition that other utilities also receive their land rights, including on the eastern portion of the project in York County. If that doesn't happen, Franklin County gets zilch.
It also contains the condition that other utilities also receive their land rights, including on the eastern portion of the project in York County. If that doesn't happen, Franklin County gets zilch.
This Joint Partial Settlement is also conditioned upon Transource PA, Mid-
Atlantic Interstate Transmission, LLC ("MAlT") (or an affiliate), and PPL Electric Utilities
Corporation receiving all necessary land rights in York and Franklin counties in order to
construct the IEC Project, as reconfigured.
It's also contingent upon approval for a new filing in Pennsylvania, and an amendment to its approval in Maryland.
This Joint Partial Settlement is further conditioned upon approval of the IEC Project, as amended in Pennsylvania and Maryland. If either the Pennsylvania Public Utility Commission or Maryland Public Service Commission deny the IEC Project, as amended, either Transource PA or Franklin County may elect to withdraw from this settlement and may proceed with litigation, including litigation of their original positions.
And Franklin County agrees not to oppose any of those fillings, as well as any other filing Transource may make.
Transource PA will be able to represent in its filings before the PA Commission, the Federal Energy Regulatory Commission and any other regulatory agency or court that it has reached settlement with Franklin County and Franklin County withdraws its opposition to the IEC Project and no longer opposes it.
Transource now owns Franklin County in any future filings.
Why, Franklin County, why? Seems like this is not going unnoticed by the voters of Franklin County, tossed under the bus. The elected officials who thought this was a good idea did so at their own risk.
And why would the PA PUC approve this settlement? Settlements need to be approved or they are not valid.
Get out your battle gear, folks! Here we go again! It seems transmission never truly goes away, it just crawls behind the baseboard for a while to take a nap.
Why, Franklin County, why? Seems like this is not going unnoticed by the voters of Franklin County, tossed under the bus. The elected officials who thought this was a good idea did so at their own risk.
And why would the PA PUC approve this settlement? Settlements need to be approved or they are not valid.
Get out your battle gear, folks! Here we go again! It seems transmission never truly goes away, it just crawls behind the baseboard for a while to take a nap.
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