FERC accepts PJM’s revised tariff sheets for new transmission facilities

FERC has accepted PJM Interconnection’s revised tariff sheets for new transmission facilities that operate at 500 kV and below 500 kV.

According to FERC’s order issued April 4, on Jan. 6, PJM, in accordance with its open access transmission tariff and its operating agreement, filed amendments to the tariff to reflect the assignments of cost responsibility for baseline upgrades included in the most recent update to the Regional Transmission Expansion Plan (RTEP) approved by the PJM board of managers (RTEP filing).

The RTEP filing included cost responsibility assignment for 167 baseline upgrades, which were approved by the PJM board in December 2011, including a region-wide cost allocation for four upgrades that are regional facilities, and the distribution factor cost allocation for 163 upgrades that will operate below 500 kV.

According to PJM, its cost responsibility assignments for the four new regional facilities upgrades in the most recent update to the RTEP approved by its board are consistent with previous FERC opinions. Further proceedings on the use of a postage-stamp cost allocation methodology for new transmission facilities that operate at or above 500 kV, and issues regarding cost responsibility assignments to merchant transmission facilities are pending before FERC, PJM added.

The Illinois Commerce Commission filed a notice of intervention and others, including Exelon (NYSE:EXC), filed motions to intervene, FERC said. The Illinois Commerce Commission protested the use of a postage-stamp cost allocation methodology for new RTEP transmission facilities that operate at or above 500 kV. It also requested that FERC reject PJM’s RTEP filing or that it hold its consideration in abeyance.

FERC said it accepts the RTEP filing with respect to the assignment of costs for new RTEP transmission facilities that operate at or above 500 kV, noting that PJM said that assignment of cost responsibility for transmission facilities that operate at or above 500 kV that are included in the RTEP filing, are consistent with the methodology set forth in its tariff. PJM also said the arguments raised by the Illinois Commerce Commission are beyond the scope of the proceeding.

Among other things, FERC said it accepted PJM’s proposed assignment of cost for new facilities that operate below 500 kV, as being consistent with the methodology set forth in PJM’s tariff, subject to refund.