PSC Consumer Advocate Division supports pausing MARL application process
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MORGANTOWN - The Public Service Commission’s Consumer Advocate Division supports a PSC staff recommendation to pause the application process for NextEra Energy Transmission MidAtlantic’s MidAtlantic Resiliency Link Project.
In a Tuesday filing with the PSC, the CAD reviewed the staff motion to toll (pause) the process for at least 60 days, or dismiss the case altogether. It also reviewed the response of several advocacy groups to the staff motion.
Staff made its motion on August 19, noting project changes requested by NextEra, new directives from the Federal Energy Regulatory Commission that staff said bring uncertainty to the project, and the possibility of construction of another line that would create duplicative service.
CAD noted that three advocacy groups support the staff motion.
West Virginians Against Transmission Injustice wants the application dismissed without prejudice - meaning NextEra would be allowed to apply again at some point.
The West Virginia Energy Users Group said it would like to see the process paused because "the staff motion correctly raises questions regarding the potential for unfair cost allocation and cost shifting to West Virginia ratepayers due in part to the FERC’s recent preliminary finding that the PJM Open Access Transmission Tariff is unjust and unreasonable. ... Until the issues attendant to changes to the applicable PUM OATT are resolved, the cost impact to West Virginia ratepayers cannot be known."
And Lake O' Woods Club, representing a residential community potentially affected by NextEra’s recent proposed route changes, intends to present expert witnesses to address the environmental concerns related to the land and the proposed changes.
Staff concerns also merit a pause, said. Five proposed route changes will affect landowners not previously affected, and they need time to review the application and have a voice in the process.
Staff is also concerned by the June FERC order concerning transmission line planning and large load data center customers, and FERC’s preliminary finding that PJM’s Open Access Transmission Tariff "appears to be unjust, unreasonable, or unduly discriminatory or preferential."
FERC found that PJM’s tariff "lacks adequate mechanisms to mitigate the risk of cost shifting among transmission customers, which may result in unjust and unreasonable rates for transmission service. PJM has been ordered to develop a pro forma cost recovery agreement that ensures eligible customers [such as data centers] bear the risk and are ultimately responsible for costs incurred to provide transmission service, including the cost of network upgrades."
And staff is concerned, CAD said, that a February FERC order "specifically mentions a concern that PJM's existing Tariff lacks clear and consistent provisions to prevent duplicative requests for transmission service."
Case in point is a proposed 765 kilovolt Joshua Falls-Yeat line by Valley Link.
Valley Link says it it a partnership between Dominion Energy, Transource (in turn a partnership between American Electric Power and Evergy) and FirstEnergy Transmission. The Joshua Falls-Yet line would span 115 miles across Virginia, to "deliver reliable power to homes, hospitals, data centers and manufacturers."
CAD said, "High-voltage transmission lines permanently alter the landscape and should only be built if they are absolutely necessary." FERC’s order "could significantly alter the way PJM plans transmission upgrades, particularly upgrades driven by data center load growth. Questions of cost allocation, alternatives to transmission lines, duplicative transmission upgrades and questions about PJM's ability to have enough generation to serve new large loads' will all be a part of the FERC inquiry."
CAD observed, "There is a lot of uncertainty surrounding the future of data centers in the PJM region. Before we charge headlong into investing billions of dollars to build [a] major transmissions line to serve these customers, we need to take a pause while some of these uncertainties are resolved."
CAD also raised a concern of its own. It said that the planned closure of the Brandon Shores power plant in Maryland was one of the drivers for PJM to pursue MARL. But it is no longer closing.
Brandon Shores and the H.A. Wagner plant also in Maryland received a Reliability Must Run extension from FERC that will keep them operating through at least 2031, CAD said.
"The addition of the Joshua Falls-Yeat line mentioned by staff and the continued operation of the Brandon Shores and Wagner units are two major developments could very well obviate the need for MARL, shift its timeline into the future, or open the possibility for reconductoring [upgrading existing transmission line conductors]."
CAD concluded, "Without this additional analysis, this is now an incomplete application."