FERC Approves MISO Cost Recovery Plan for Transmission Projects in PJM Footprint
The Federal Energy Regulatory Commission has approved a cost allocation framework for transmission projects sought by the Midcontinent Independent System Operator but built in the PJM Interconnection’s footprint.
The Federal Energy Regulatory Commission (FERC) has approved a cost allocation framework for transmission projects sought by the Midcontinent Independent System Operator (MISO) but built in the PJM Interconnection’s footprint.
The approved framework will allow Exelon’s Commonwealth Edison to build one group of projects totaling about $904 million, while Duke Ohio is slated to build $5.3 million in projects.
The FERC commissioners who supported the proposal, Judy Chang and David Rosner, stated that MISO’s proposal highlights the importance of interregional transmission. They argued that the benefits of these facilities, including improved reliability, reduced congestion costs, and more efficient resource integration, are inherently interregional in nature.
The proposal and related cost recovery and funding agreements grew out of MISO’s Tranche 2.1 plan, which includes building a 765-kV backbone across its Midwest region. The plan was approved by MISO’s board in December 2024.
However, the Electricity Transmission Competition Coalition and Industrial Energy Consumers of America argued that the PJM transmission should be subject to MISO’s competitive bidding requirements instead of the projects being directly assigned to ComEd and Duke. FERC disagreed, stating that MISO lacks the authority to facilitate or require the development of transmission facilities in another region.
The commissioners noted that grid operators’ rules may not reflect the growing need for interregional transmission. They suggested that transmission planners should make interregional transmission a “more regular and intentional feature” of their work.
## Interregional Transmission Benefits
The commissioners emphasized the benefits of interregional transmission, including:
* Greater interregional connectivity will allow regions to share resources more efficiently * Mitigate the impacts of extreme weather events * Speed the connection of new demand and all types of new energy resources * Minimize collective infrastructure costs
## Cost Allocation Framework
The approved cost allocation framework will allow Exelon’s Commonwealth Edison to build one group of projects totaling about $904 million, while Duke Ohio is slated to build $5.3 million in projects.
| Project | Cost | | --- | --- | | Exelon’s Commonwealth Edison | $904 million | | Duke Ohio | $5.3 million |
The FERC commissioners who supported the proposal, Judy Chang and David Rosner, stated that MISO’s proposal highlights the importance of interregional transmission. They argued that the benefits of these facilities, including improved reliability, reduced congestion costs, and more efficient resource integration, are inherently interregional in nature.
The proposal and related cost recovery and funding agreements grew out of MISO’s Tranche 2.1 plan, which includes building a 765-kV backbone across its Midwest region. The plan was approved by MISO’s board in December 2024.
However, the Electricity Transmission Competition Coalition and Industrial Energy Consumers of America argued that the PJM transmission should be subject to MISO’s competitive bidding requirements instead of the projects being directly assigned to ComEd and Duke. FERC disagreed, stating that MISO lacks the authority to facilitate or require the development of transmission facilities in another region.
The commissioners noted that grid operators’ rules may not reflect the growing need for interregional transmission. They suggested that transmission planners should make interregional transmission a “more regular and intentional feature” of their work.
## Conclusion
The FERC approval of the cost allocation framework for transmission projects in the PJM footprint highlights the importance of interregional transmission. The benefits of these facilities, including improved reliability, reduced congestion costs, and more efficient resource integration, are inherently interregional in nature. The commissioners emphasized the need for transmission planners to make interregional transmission a more regular and intentional feature of their work.
