Energy Committee Fact of the Day

March 7, 2006
04:00 PM

Because of the energy bill . . . .

PJM Interconnection yesterday asked the U.S. Department of Energy to designate two electrical paths as National Interest Electric Transmission Corridors to address electric transmission needs in the Mid-Atlantic region. PJM is the first regional transmission organization to invoke new authority granted by Congress to the U.S. Department of Energy under the Energy Policy Act of 2005.

The designation will help resolve transmission constraints that are driving up energy costs and affecting reliability in major eastern cities such as Washington, D.C.; Baltimore; Wilmington, Del.; Philadelphia; Newark, N.J.; and New York City.

PJM asked for a national interest designation for the  Allegheny Mountain path – the high-voltage transmission system extending from the West Virginia panhandle region southeastward and serving population centers in the Baltimore-Washington area, and the Delaware River path – the high-voltage transmission system extending from the West Virginia panhandle region east and serving population centers in Philadelphia, New Jersey and Delaware.

PJM said the national interest designation of the transmission paths is needed to maintain reliability, achieve economic benefits for consumers, ease electricity supply limitations in markets and diversify electricity sources, and enhance energy independence  In 2005, transmission congestion on the Allegheny Mountain path totaled $747 million. It totaled $464 million on the Delaware River path in 2005, according to PJM. The proposed designation will also assist in the development of renewable resources such as wind power in addition to bringing other new and existing resources to a broader market.