Stopping electric transmission owners from taking $336 million from consumers
By Tyson Slocum
Today in Federal Energy Regulatory Commission Docket No. ER21-2282, we filed the following protest:
On June 30, 2021, PJM filed an application under Section 205 of the Federal Power Act seeking permission to earn profits on certain transmission Network Upgrades primarily built to serve renewable generation projects. Noting that there has been a proliferation of new renewable energy interconnections to PJM’s grid stemming not from PJM’s market design, but rather as “a result of recent public policy initiatives focused on promoting the development of clean, renewable generation resources to mitigate climate change issues”[1], the transmission owners ask that the PJM tariff be amended to allow them to earn a profit on these Network Upgrades—despite the fact that these improvements are financed by the renewable project developers and not the transmission owners!
The Commission must reject this frivolous application. As revealed in the sample calculations included as Attachment E of the Application, the proposal would seek to recover roughly $336,375,000 from ratepayers, just to finance larger profits for the transmission owners. This massive rate hike is unsupported by the facts, and is unjust and unreasonable.
In addition, the application is associated with a confidentiality and common interest agreement signed by PJM Interconnection in collusion with the transmission owners that represents a flagrant violation of PJM’s tariff, as it has never been disclosed to or approved by FERC.
Finally, we request that FERC disallow any and all cost recovery of expenses related to the preparation and filing of the June 30 application.
Read the full filing here: TransmissionPriceGouge