PJM ignores stakeholders and approves transmission lines to be built

By Audrey Carpenter

In an unprecedented vote that ignored homeowners, business owners, farmers, legal counsel, politicians, a voluminous amount of conservation groups and even other utility industry peers, PJM Interconnection’s Board of Managers voted Dec. 11 to approve electrical transmission lines and a substation to be built through sensitive historic and environmental areas of Western Loudoun County.

PJM is a regional transmission organization that coordinates the movement of wholesale electricity in all or parts of 13 states and the District of Columbia. It stated new power lines and substations need to be built in order to increase electricity throughout the region, much of which will flow to power-intensive data centers across Northern Virginia and Maryland, and to replace retiring power plants.

PJM evaluated 72 transmission line proposals since the Spring and narrowed down its scope to a handful that would, in part, rebuild transmission lines in some existing right-of-ways, but in other areas would build completely new lines.

Of particular concern was Proposal 2022-W3-853 which would deeply impact rural Western Loudoun County by constructing 130 miles of new 510-kilovolt (kV) electrical transmission lines that would meander through western Loudoun County from West Virginia to Leesburg, traversing designated historic districts in Waterford and Paeonian Springs, as well as the Washington & Old Dominion Trail, Sweet Run State Park and the Philip A. Bolen Memorial Park. A 500/138-kV substation would also be built.

This proposal was submitted to PJM by NextEra Energy Transmission MidAtlantic, corporately based in Juno Beach, Fla.

Despite PJM receiving 250 mostly unsupportive comments regarding the project and letters asking for more time for review before a vote was held from the Maryland Office of People’s Counsel and the OPSI, an inter-governmental organization of utility regulatory agencies in 14 jurisdictions of PJM’s service area, the 10-member Board of Managers voted in favor of the controversial transmission lines anyway, adopting NextEra Energy’s proposal.

OPSI includes the Virginia State Corporation Commission and the Public Service Commission of West Virginia. It’s letter to PJM can be seen here: https://opsi.us/wp-content/uploads/2023/11/HIN-Process-PJM-Board-Letter-11.28.23.pdf.

The letter states in part: “The [electricity] reliability challenges that have recently presented themselves, coupled with the significant cost impact on customers associated with addressing these challenges have amplified our concern that factors outside the transmission planning process may contribute to the high cost of transmission upgrades and warrant attention to ensure these costs do not become an undue burden to retail consumers.”

“As such, the OPSI Board requests your support in working hand-in-hand, with the help of our respective staffs, to better understand the issues and explore solutions, tools and reforms that may more timely and cost effectively ensure grid reliability.”

The letter further states, “The size and scope of those [W3] projects merely amplifies the concerns many OPSI members have had for years about the negative impact of siloed, reactive planning.”

PJM provided only an 18-day review and public comment period – from Nov. 17 to Dec. 5 – despite the fact that it was voting on a $5-$6 billion project which would be paid for by consumers. The Maryland Office of People’s Counsel recommended PJM allow an additional six-month period for public review, evaluation and comments.

“[Governor Glenn Youngkin] is going to be responsible for the largest electric rate increase in Virginia history if he doesn’t intervene,” said Piedmont Environmental Council President Chris Miller after a press conference announcing the formation of the Virginia Data Center Reform Coalition on Dec. 1 in Warrenton.

The coalition is composed of 20 conservation organizations urging the state to study the cumulative effects of data center development on the state’s electrical grid, water resources, air quality, and land conservation efforts, and to institute several common-sense regulatory and rate-making reforms for the industry.

The announcement of PJM’s Board of Managers vote was posted to its website at 6:51 p.m. on Dec. 11. A link to that information can be seen here: https://insidelines.pjm.com/pjm-board-of-managers-approves-critical-grid-upgrades/

On Wednesday, Dec. 13, the Loudoun County Board of Supervisors is scheduled to vote on a Final Draft Zoning Ordinance which provides, in part, protections for environmental and historic/heritage areas. However, states grant utilities eminent domain rights in order to deliver reliable service to consumers, which overrides local zoning authority.

NextEra Energy states that in January 2024 it will begin engaging with local stakeholders as it begins the process of fine tuning the selected path of the transmission lines. NextEra Energy will finance, develop, own, construct, operate and maintain the transmission lines and substation. However, the Virginia State Corporation Commission, the state regulator, gives final approval per state code § 56-46.1.

In a letter dated Dec. 8 from Matt Valle, president of NextEra, he stated, “We have successfully constructed transmission projects in 11 states around the country, and we recognize that constant and transparent dialogue with the local communities will be critical to our mission of keeping the lights on.”

Valle further added, “We are in the process of developing a detailed routing study to evaluate route alternatives, including routes that are more closely aligned with existing infrastructure corridors, all of which will be shaped by stakeholder input. Our goal is full transparency and collaboration with those communities and stakeholders that may be impacted, and we look forward to working with them to develop and execute on this project to ensure the critical electric reliability needs of the region are met.”

“Many legal issues will come up, including conservation easements, clean energy laws, eminent domain used to help commercial purposes, etc. Arguments will be made about historic and environmental considerations. Then arguments will be made about route details, compensation, types of towers to reduce visual impact and so forth. In this case, NextEra will also need approval from West Virginia regulator for the portion there,” said a Loudoun County resident who asked not to be identified.

The fight is far from over.