Dominion Energy, American Electric Power, FirstEnergy reach joint planning agreement to propose regional transmission projects across PJM footprint
Rhea-AI Summary
Dominion Energy Virginia, American Electric Power, and FirstEnergy Corp. have entered a joint planning agreement to propose new regional electric transmission projects across the PJM footprint. This collaboration aims to address the growing power demand in the region due to expanding energy-intensive industries, electrification, and manufacturing onshoring. The companies jointly proposed projects through PJM's Regional Transmission Expansion Plan Open Window process in September, including new 765-kV, 500-kV, and 345-kV transmission lines in Virginia, Ohio, and West Virginia.
The partnership leverages the expertise of these industry leaders to develop comprehensive, cost-effective solutions that promote regional grid reliability. If selected by PJM, the projects would undergo an extensive process of route selection, environmental studies, community engagement, and permitting before construction.
Positive
- Collaboration between three major energy companies to address growing power demand
- Proposed new high-voltage transmission lines across multiple states
- Potential to improve regional grid reliability and support economic growth
- Alignment with FERC's encouragement of efficient regional transmission development
Negative
- Projects are in early stages and subject to PJM approval
- Extensive multi-year process required before construction can begin
- Potential environmental and community impacts from new transmission lines
News Market Reaction – D
On the day this news was published, D declined 0.49%, reflecting a mild negative market reaction.
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- Companies jointly propose electric transmission projects to serve region's growing power demand through PJM's competitive planning process
- Collaboration leverages expertise of industry leaders to propose comprehensive, cost-effective solutions that promote regional grid reliability
The innovative collaboration comes at a time when efficient and cost-effective regional transmission development is essential and encouraged by the Federal Energy Regulatory Commission (FERC), the independent federal agency that regulates the interstate transmission of electricity.
Power demand in the PJM region is growing at an unprecedented pace due to rapid expansion of energy-intensive industries such as data centers, the electrification of transportation and heating, and increased manufacturing onshoring. At the same time, the region's power generation mix is changing as legacy generation is retired and more renewables are added to the grid.
"This dynamic environment requires more regional collaboration to develop large-scale 'backbone' transmission infrastructure that spans across the areas served by our three companies," said Ed Baine, President of Dominion Energy Virginia. "By leveraging the expertise and resources of three industry leaders whose transmission zones border one another, we're better able to develop superior and more cost-effective solutions required to effectively resolve reliability issues across the PJM region. These projects are more comprehensive and will be more effective than what each of our companies would be able to develop individually."
"Energy-intensive industries, electrification and the energy transition all rely on a robust power grid," said Mark Mroczynski, President, FirstEnergy Transmission. "By drawing upon the combined experience of three leading transmission developers, we can take the proactive steps needed to build new infrastructure that will ensure our communities have the power they need for sustained health and economic growth in the future."
"AEP operates the largest transmission network in the nation and has more experience building 765 kV infrastructure than any other company in the
The companies jointly proposed the projects through PJM's Regional Transmission Expansion Plan (RTEP) Open Window process in September. PJM is the regional transmission organization that coordinates the transportation of wholesale electricity across the 13-state region that includes
The projects remain in the early stages of development. If selected by PJM, the companies would then undertake an extensive, multi-year process to select routes, perform environmental studies, engage with communities, obtain state and local permitting and build the projects.
In addition to the joint proposals, each of the three companies have also submitted individual proposals for other transmission projects consistent with how each company has participated in past PJM open windows.
About Dominion Energy
Dominion Energy (NYSE: D), headquartered in
About AEP
AEP, headquartered in
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
Forward-Looking Statements
This release contains certain forward-looking statements that are subject to a variety of factors that could cause actual events or results to differ from those included in these statements. These factors are identified in Dominion Energy's Forms 10-K and 10-Q filed with the
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SOURCE Dominion Energy
FAQ
What companies are involved in the joint planning agreement for PJM transmission projects?
What types of transmission lines are proposed in the joint planning agreement?
Why is there a need for new transmission projects in the PJM region?
When did Dominion Energy (D) and partners submit their joint proposal to PJM?
