PJM selects regional transmission projects to be jointly developed by FirstEnergy, Dominion Energy, American Electric Power

Rhea-AI Summary

PJM Interconnection has selected multiple electric transmission projects to be jointly developed by FirstEnergy Transmission, Dominion Energy, and American Electric Power through its Transource Energy affiliate. The companies will collaborate through the newly formed Valley Link Transmission Company joint venture.

The selected projects include:

• A 260-mile 765-kilovolt transmission line and two substations between Putnam County, WV, and Frederick County, MD
• A 155-mile 765-kV transmission line and substation between Campbell County, VA, and Fauquier County, VA
• A new substation in Caroline County, VA

The projects, proposed through PJM's Regional Transmission Expansion Plan Open Window process in September 2024, aim to address reliability needs, support economic development, and meet growing power demands across Virginia, West Virginia, and Maryland. The development is in early stages, with detailed plans for permitting, regulatory approvals, and public participation expected in the coming months.

Positive

• Strategic partnership formed with major utility companies
• Significant infrastructure expansion with 415 total miles of new transmission lines
• Project addresses documented reliability concerns and growing power demand
• Selected as preferred developer by PJM after competitive process

Negative

• Long development timeline with no firm construction schedule
• Significant regulatory and permitting approvals still required
• Large-scale project carries execution and cost risks

Companies will jointly develop transmission projects in Virginia, West Virginia and Maryland to reliably serve the region's growing power demand

Needed transmission reliability investments will also increase the grid's resiliency and capacity to support new generation

Projects are in the early stages of development, with more detailed plans for permitting, regulatory approvals and public participation expected in the coming months

AKRON, Ohio, Feb. 27, 2025 /PRNewswire/ -- Regional grid operator PJM Interconnection has selected several electric transmission projects that will be jointly developed by FirstEnergy Transmission LLC, Dominion Energy and American Electric Power Company through its Transource Energy affiliate across multiple states within the PJM footprint.

The companies jointly proposed the projects through PJM's Regional Transmission Expansion Plan (RTEP) Open Window process in September 2024, and yesterday they were awarded by the PJM Board of Managers. PJM is the regional transmission organization that coordinates the transportation of wholesale electricity across the 13-state region that includes Virginia, West Virginia and Maryland.

The companies will develop the projects through the recently formed Valley Link Transmission Company LLC joint venture. The innovative collaboration will leverage the companies' collective expertise and resources to deliver comprehensive and cost-effective solutions that address the region's growing power needs.

After a lengthy review process, PJM determined the joint venture's proposed projects, among others, best met the reliability needs of the grid. The projects will support economic development while ensuring every customer has the energy they rely on every day.

"By leveraging the collective expertise of our three companies, we have the opportunity to build robust transmission facilities that will address documented reliability concerns on the regional power grid," said Mark Mroczynski, President, Transmission at FirstEnergy. "While we're in the very early stages, we look forward to engaging with communities and stakeholders in the months ahead to discuss the need for these projects and listen to the ideas and concerns of our customers."

"These projects are essential for the economic vitality of our region, the reliability of our grid and the everyday lives of our customers," said Ed Baine, President of Utility Operations and Dominion Energy Virginia. "These are comprehensive solutions needed to reliably serve the growing needs of our customers, and we thank PJM for their thorough review."

"AEP has decades of experience with projects of the size and scope needed to serve the unprecedented growth in energy demand," said Bob Bradish, Senior Vice President, Regulated Infrastructure Investment Planning for AEP. "This joint venture is a unique solution to addressing the needs of our customers and ensuring long-term reliability and continued economic growth opportunities in the region."

The selected projects include:

• Building approximately 260 miles of 765-kilovolt (kV) transmission line and two substations between Putnam County, West Virginia, and Frederick County, Maryland.
• Building approximately 155 miles of 765-kV transmission line and a substation between Campbell County, Virginia, and Fauquier County, Virginia.
• Building a new substation in Caroline County, Virginia.

The projects are in the early stages of development and do not have a firm time frame yet for permitting, regulatory approvals and construction. Following PJM's recent awards, the companies will advance the development of project details, which includes assessing potential routes and conducting thorough environmental studies.

The companies are committed to collaborating with residents, local governments and other stakeholders in the project communities at every stage of the process. Community engagement is crucial for making informed decisions that reduce or prevent potential impacts.

In addition to the jointly developed projects, PJM selected several other transmission projects that will be developed individually by each of the three companies in their service areas.

About FirstEnergy
FirstEnergy Corp. (NYSE: FE), is dedicated to integrity, safety, reliability and operational excellence. Its electric distribution companies form one of the nation's largest investor-owned electric systems, serving more than six million customers in Ohio, Pennsylvania, New Jersey, West Virginia, Maryland and New York. The company's transmission subsidiaries, which include FirstEnergy Transmission LLC (FET), operate approximately 24,000 miles of transmission lines that connect the Midwest and Mid-Atlantic regions. Jointly owned by FirstEnergy and Brookfield Super-Core Infrastructure Partners, FET is the equity investor in Valley Link Transmission LLC. FET owns and operates American Transmission Systems Inc. (ATSI), Mid-Atlantic Interstate Transmission (MAIT) and Trans-Allegheny Interstate Transmission Line Company (TrAILCo). Follow FirstEnergy online at firstenergycorp.com and on X @FirstEnergyCorp.

About Dominion Energy
Dominion Energy (NYSE: D), headquartered in Richmond, Virginia, provides regulated electricity service to 3.6 million homes and businesses in Virginia, North Carolina, and South Carolina, and regulated natural gas service to 500,000 customers in South Carolina. The company is one of the nation's leading developers and operators of regulated offshore wind and solar power and the largest producer of carbon-free electricity in New England. The company's mission is to provide the reliable, affordable, and increasingly clean energy that powers its customers every day. Please visit DominionEnergy.com to learn more.

About AEP
Our team at American Electric Power (Nasdaq: AEP) is committed to improving our customers' lives with reliable, affordable power. We are investing $54 billion from 2025 through 2029 to enhance service for customers and support the growing energy needs of our communities. Our nearly 16,000 employees operate and maintain the nation's largest electric transmission system with 40,000 line miles, along with more than 225,000 miles of distribution lines to deliver energy to 5.6 million customers in 11 states. AEP also is one of the nation's largest electricity producers with approximately 29,000 megawatts of diverse generating capacity. We are focused on safety and operational excellence, creating value for our stakeholders and bringing opportunity to our service territory through economic development and community engagement. AEP participates in the competitive transmission space through Transource, a jointly owned transmission company with Evergy, Inc., headquartered in Kansas City, Missouri.

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changing market conditions affecting the measurement of certain liabilities and the value of assets held in our pension trusts may negatively impact our forecasted growth rate, results of operations and may also cause us to make contributions to our pension sooner or in amounts that are larger than currently anticipated; mitigating exposure for remedial activities associated with retired and formerly owned electric generation assets, including those sites impacted by the legacy coal combustion residual rules that were finalized during 2024; changes to environmental laws and regulations, including, but not limited to, rules finalized by the Environmental Protection Agency and the SEC, including those currently stayed, related to climate change; and potential changes to such laws and regulations as a result of the new U.S. presidential administration; changes in customers' demand for power, including, but not limited to, economic conditions, the impact of climate change, emerging technology, particularly with respect to electrification and new data centers, energy storage and distributed sources of generation; the ability to access the public securities and other capital and credit markets in accordance with our financial plans, the cost of such capital and overall condition of the capital and credit markets affecting us, including the increasing number of financial institutions evaluating the impact of climate change on their investment decisions, and the loss of our status as a well-known seasoned issuer; future actions taken by credit rating agencies that could negatively affect either our access to or terms of financing or our financial condition and liquidity; changes in assumptions regarding factors such as economic conditions within our territories, the reliability of our transmission and distribution system, generation resource planning, or the availability of capital or other resources supporting identified transmission and distribution investment opportunities; the potential of non-compliance with debt covenants in our credit facilities; the ability to comply with applicable reliability standards and energy efficiency and peak demand reduction mandates; human capital management challenges, including among other things, attracting and retaining appropriately trained and qualified employees and labor disruptions by our unionized workforce; changes to significant accounting policies; any changes in tax laws or regulations, including, but not limited to, the Inflation Reduction Act of 2022, or adverse tax audit results or rulings and potential changes to such laws and regulations as a result of the new U.S. presidential administration; and the risks and other factors discussed from time to time in our SEC filings. Dividends declared from time to time on our common stock during any period may in the aggregate vary from prior periods due to circumstances considered by the FE Board at the time of the actual declarations. A security rating is not a recommendation to buy or hold securities and is subject to revision or withdrawal at any time by the assigning rating agency. Each rating should be evaluated independently of any other rating. These forward-looking statements are also qualified by, and should be read together with, the risk factors included in FirstEnergy Corp.'s Form 10-K, Form 10-Q and in FirstEnergy's other filings with the SEC. The foregoing review of factors also should not be construed as exhaustive. New factors emerge from time to time, and it is not possible for management to predict all such factors, nor assess the impact of any such factor on FirstEnergy Corp.'s business or the extent to which any factor, or combination of factors, may cause results to differ materially from those contained in any forward-looking statements. FirstEnergy Corp. expressly disclaims any obligation to update or revise, except as required by law, any forward-looking statements contained herein or in the information incorporated by reference as a result of new information, future events or otherwise.

 

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SOURCE FirstEnergy Corp.

FAQ

What are the main transmission projects selected by PJM for FirstEnergy (FE) and partners?

The projects include a 260-mile 765-kV line between WV and MD, a 155-mile 765-kV line in VA, and a new substation in Caroline County, VA.

When will FirstEnergy (FE) begin construction on the new transmission projects?

The projects are in early development stages with no firm timeline yet for permitting, regulatory approvals, and construction.

Which states will be affected by FirstEnergy's (FE) new transmission projects?

The transmission projects will span across Virginia, West Virginia, and Maryland within the PJM footprint.

Who are FirstEnergy's (FE) partners in the Valley Link Transmission Company venture?

FirstEnergy is partnering with Dominion Energy and American Electric Power (through its Transource Energy affiliate).

What is the purpose of FirstEnergy's (FE) new transmission projects?

The projects aim to address grid reliability concerns, support economic development, and meet growing power demands in the region.