Grid operator committed more than $725 million to infrastructure investments in past two years

VALLEY FORGE, Pa., Oct. 8, 2002 — More than $725 million in transmission infrastructure investments have been committed by PJM Interconnection over the past two years to enhance its electricity grid.

The third phase of the PJM Regional Transmission Expansion Plan (RTEP) was approved by the PJM Board of Managers on Oct. 2.

Phase three accommodates the interconnection of 39 generation projects, representing approximately 8,600 megawatts of new generating capacity. Since the regional planning process was implemented in 2000, RTEP has added more than 6,000 megawatts of new generation to the PJM system.

Another 6,500 plus megawatts are under construction. Board approvals also include transmission upgrades that provide for continuing compliance of the PJM system with regional reliability criteria.

“RTEP’s transmission facility additions and reinforcements ensure the continued reliable delivery of electricity in the region and enhance the robustness of the PJM energy and capacity markets. The $725 million approved by our board represents an 11 percent increase in transmission assets,” said Phillip Harris, PJM chief executive officer and president.

“Along with the generation interconnection process, RTEP delivers real results and demonstrates how to plan comprehensively for the long-term viability of a grid. One of our most important challenges, as an industry, is to protect the infrastructure of the electricity grid nationwide. We must understand our network needs and plan and implement today to keep the system strong for tomorrow. Competitive energy markets require a fully integrated planning process. RTEP meets this need through focus, collaboration and commitment.”

RTEP consolidates the region’s transmission needs into a uniform, comprehensive strategy — one that complements development of wholesale energy markets. RTEP is unique as it is:

“- Driven by the comprehensive transmission service needs of the region,

“- Developed based on input through a public process involving many constituencies, including transmission owners, generation developers, market participants, the environmental community and representatives from state regulatory bodies,

“- Recommended by the PJM staff, following extensive evaluation performed in coordination with PJM transmission owners, to ensure the plan meets the needs of the PJM transmission system in the most efficient and effective manner,

“- Reviewed by all stakeholders in the region through the PJM Transmission Expansion Advisory Committee, and

“- Reviewed and approved by the PJM Board of Managers for implementation.

PJM’s Board of Managers approved the first phase of the RTEP in August 2000 and the second phase in June 2001.

The PJM Board of Managers, an independent, eight-member board that has no financial interest in any PJM member, oversees the direction of the PJM office and is responsible for ensuring the safe and reliable operation of the robust and competitive PJM wholesale power market.

PJM, the country’s first fully functioning regional transmission organization, operates the world’s largest competitive wholesale electricity market and North America’s largest power grid.

The company currently coordinates a pooled generating capacity of more than 71,600 megawatts and operates a wholesale electricity market with more than 200 market buyers, sellers and traders of electricity. PJM has administered more than $9 billion in energy and energy service trades since the regional markets opened in 1997.

More than 70 nations have sent delegates to PJM to learn about its market model and the operation of the grid in a region including more than 25 million people in all or parts of PA, NJ, MD, DE, OH, VA, WV and the District of Columbia.

With the April 1, 2002, addition of PJM West, for the first time nationally two separate control areas now operate under a single energy market and a single governance structure across multiple North American Electric Reliability Councils. Visit PJM at

Source: PJM Interconnection, LLC

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