Delmarva Power submits correction to Maryland regulators to application to rebuild 138-kV line

Delmarva Power and Light on June 13 submitted a correction to its application for a certificate of public convenience and necessity to rebuild an existing 138-kV overhead transmission line from the Church substation in Queen Anne’s County, Md., to the Maryland/Delaware state line.

Substation costs are $400,000 and the Maryland transmission costs are $13.7m, the company said.

The total estimated annual operating cost of the rebuilt transmission line – the Maryland portion only – will be about $572,180. The current estimated annual operating cost for the rebuilt 138-kV circuit from Church to Townsend attributable to the 10.86-mile portion in Maryland includes estimated operation and maintenance costs of about $9,875, estimated depreciation costs of $341,130 and estimated taxes of $221,175.

The company also said that project financing will come from a combination of internal and external sources, with the largest funding source coming from external sources, including corporate debt or other similar securities of parent company Pepco Holdings (NYSE:POM), as well as issuance of Pepco Holdings common equity. Proceeds of Pepco Holdings equity issuances will be contributed to its utilities in order for them to maintain investment grade credit ratings and balanced capital structures.

PJM Interconnection has identified the load in the Delmarva transmission zone as responsible for all costs associated with the project. Delmarva Power also said that the construction investment will become a part of the company’s FERC-regulated transmission rate base, and the charge to recover those costs will be billed to all transmission service customers in the Delmarva Power zone through PJM.

Based on the estimated $14.1m overall cost of the Maryland portion of the project, the initial annual charge or annual revenue requirement attributable to the project will be about $2.82m, which translates to a $677 per MW-Yr charge, effective June 1, 2014, the first full year of plant in service cost recovery.

The local communities in which the project will be located will derive about $225,446 in new annual tax revenues, $221,175 of which is associated with the transmission line itself, with the difference being associated with the substation modifications. Delmarva Power also said that the project will benefit those communities by generating increased economic activity during construction with the increased workforce in the area.

About Corina Rivera-Linares 3286 Articles
Corina Rivera-Linares was TransmissionHub’s chief editor until August 2021, as well as part of the team that established TransmissionHub in 2011. Before joining TransmissionHub, Corina covered renewable energy and environmental issues, as well as transmission, generation, regulation, legislation and ISO/RTO matters at SNL Financial from 2005 to 2011. She has also covered such topics as health, politics, and education for weekly newspapers and national magazines.