The PJM Interconnection Board has authorized more than $636 million in electric transmission projects to strengthen the grid and reduce electricity costs. The approvals include a market efficiency project expected to save customers $622 million over 15 years.
The $320 million market efficiency project is expected to alleviate transmission congestion across the Pennsylvania and Maryland border. It involves upgrades at existing substations, two new substations, two new transmission lines and improvements to existing lines. The expected in-service date is 2020.
"This is PJM's largest-ever market efficiency project, and we expect it will resolve a significant amount of the remaining transmission congestion in the eastern portion of PJM," said Andrew L. Ott, PJM president and CEO.
The project will be constructed principally by Transource Energy, LLC (an AEP affiliate), Baltimore Gas & Electric and Allegheny Power. The proposal originated out of PJM's competitive process for transmission improvements.
The PJM Board approved a net $316.3 million in other new or changed projects to maintain the reliability of the regional electric transmission grid.
With the recently approved changes, PJM has authorized $29 billion in transmission additions and upgrades since the first Regional Transmission Expansion Plan was approved in 2000.