EIA Publishes Regional Electricity Supply and Pricing Forecasts Using UPLAN Model

LCG, August 13, 2019--The U.S. Energy Information Administration (EIA) announced that it is revising the presentation and modeling of its forecasts for electricity supply and market hub pricing to better reflect current electricity markets and system operations in the U.S. Beginning with the August 2019 Short-Term Energy Outlook (STEO), the new forecasting approach models electricity markets using the UPLAN production cost optimization software developed by LCG Consulting. EIA uses the solution results provided by this proprietary model to develop the STEO forecasts of monthly electricity generation, fuel consumption, and wholesale prices.

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Dominion Energy Virginia Pursues 500 MW of Renewable Projects

LCG, August 8, 2019--Dominion Energy Virginia announced Monday that it is seeking bids for up to 500 MW of renewable capacity in both 2021 and 2022 to increase its clean energy resources. Dominion Energy stated that it is committed to having 3,000 MW of solar and wind in operation or under development in Virginia by 2022. This near-term step is part of an ultimate company commitment to reduce carbon emissions by 80 percent by 2050 across the 18 states it serves.

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Industry News

PJM Acts to Establish National Interest Electric Transmission Corridors

LCG, March 9, 2006--PJM Interconnection, LLC (PJM) earlier this week filed a request with the Department of Energy (DOE) to designate two electrical paths as National Interest Electric Transmission Corridors (NIETC). If the designation is provided by the DOE, it is expected that a more timely solution can be implemented to reduce transmission congestion and related costs, as well as improve grid reliability.

One high-voltage, transmission corridor targeted is the Allegheny Mountain path, which connects electric generation resources west of the Allegheny Mountains in West Virginia and the Ohio and Kanawha River valleys with load centers in the metropolitan areas of Washington, D.C. and Baltimore.

The second high-voltage, transmission corridor targeted is the Delaware River path, which links electric generation resources west of the Allegheny Mountains in western Pennsylvania, West Virginia and the Ohio and Kanawha River valleys with load centers in the metropolitan areas Philadelphia, Wilmington, Newark and northern New Jersey, and exports to New York City as well.

Last week Allegheny Energy proposed building a $1.4 billion, 330-mile, 500-kV transmission line that would utilize the Allegheny Mountain path. Allegheny stated the first segment is scheduled to be operational in 2013.

AEP filed in February plans with the Federal Energy Regulatory Commission (FERC) to use the Delaware River path to build an electric "superhighway." The proposed 550-mile long, AEP Interstate Project is estimated to cost $3 billion and is scheduled to commence operations in 2014.

AEP and Allegheny Energy requested the DOE to designate their proposed lines as NIETC projects, as the Energy Policy Act of 2005 provides for NIETC designation for areas that are experiencing electric energy transmission capacity constraints or congestion that adversely affects consumers. Both companies also filed plans with PJM to build their projects. PJM will consider these and other proposals through its Regional Transmission Planning process. The two proposals - which when combined would extend nearly 900 miles and would cost roughly $4.4 billion - will be also evaluated by a number of other regulatory agencies in multiple states. If NIETC designation is granted, then greater federal pressure may be applied to expedite the process.
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