PJM Transmission Upgrades Cost Allocation Reform
Sector: Energy & Utilities • Location: New Jersey, New York, United States
Source: JD Supra
The Federal Energy Regulatory Commission (FERC) eliminated PJM's de minimis threshold exemption, which previously exempted large load zones from paying certain transmission upgrade costs despite significant usage. This change affects how PJM allocates transmission project costs, including retroactive recalculations and refunds dating back to 2015. The ruling impacts cost responsibilities among lar
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Description
Description | The Federal Energy Regulatory Commission (FERC) eliminated PJM's de minimis threshold exemption, which previously exempted large load zones from paying certain transmission upgrade costs despite significant usage. This change affects how PJM allocates transmission project costs, including retroactive recalculations and refunds dating back to 2015. The ruling impacts cost responsibilities among large and small zones and merchant transmission facilities, with potential financial implications exceeding $1 billion including interest. |
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