OPC asks federal regulators to reject proposed cost recovery for $1.1 billion in transmission projects
BALTIMORE – The Federal Energy Regulatory Commission (FERC) should reject a utility cost recovery proposal for $1.1 billion in transmission project costs because unnecessary incentives and excessive profits make it unlawful, the Maryland Office of People’s Counsel said in a protest filed last week.
OPC’s filing challenges the proposal of Grid Growth Ventures, which is indirectly controlled by utility holding companies American Electric Power Company and FirstEnergy Corp., to build five new, large transmission projects in Ohio. Through the cost allocation rules of the regional transmission organization, PJM Interconnection LLC, Maryland customers would pay a portion of the costs.
“Grid Growth is asking for a treasure trove of risk-reducing incentives,” said Maryland People’s Counsel David S. Lapp. “These incentives, along with proposed high profits, are unreasonable and will unfairly drive up costs for Maryland customers.”
The risks for Grid Growth are minimal, making the incentives unwarranted, and the profit level sought—the requested return on equity—is inconsistent with FERC policy, OPC’s filing says.
The Grid Growth projects are part of PJM’s 2025 Regional Transmission Expansion Plan (RTEP), Window 1. Like the two previous RTEPs, the 2025 transmission plan is driven primarily by data center load growth outside of Maryland. OPC previously has challenged PJM’s allocation of such data-center driven costs to Maryland customers.
OPC’s protest asks FERC to deny Grid Growth’s application and hold an evidentiary hearing to fully analyze the request.
The Maryland Office of People’s Counsel is an independent state agency that represents Maryland’s residential consumers of electric, natural gas, telecommunications, private water and certain transportation matters before the Public Service Commission, federal regulatory agencies and the courts.
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