American Electric Power (AEP) and its competitive transmission affiliate, Transource Energy, will invest about $1.7bn in transmission system upgrades across several states within the PJM Interconnection region.
The investment aims to enhance reliability and increase power availability in Indiana, Maryland, Ohio, Virginia, and West Virginia.
The projects were selected by the PJM Board of Managers to address forecasted conditions that could lead to reliability concerns. They were proposed through PJM’s Regional Transmission Expansion Plan (RTEP) process, which invites transmission developers to submit solutions for identified system needs.
The selected proposals are expected to be operational by 2029.
AEP’s submissions included new transmission lines and substations, upgrades to existing power lines, and substation equipment replacements, all of which are intended to support grid reliability and affordability.
Of the total investment, approximately $1.1bn will be advanced through Transource Energy as part of a joint venture (JV) with Dominion Energy and FirstEnergy Transmission.
The JV, Valley Link Transmission Company, has been awarded several key projects, including two 765kilovolt (kV) transmission lines in West Virginia, Virginia, and Maryland.
The remaining $600m will fund projects by AEP’s Transmission Companies and operating units in Indiana, Ohio, and Virginia.
AEP president and CEO Bill Fehrman said: “Our experience building the largest transmission system in North America made us an ideal candidate to help address the needs that PJM identified during their planning process.
“Our teams are ready to get to work engaging with our communities and stakeholders and are excited about being part of powering additional economic development opportunities in the region.”
FirstEnergy Transmission (FET), jointly owned by FirstEnergy and Brookfield Super-Core Infrastructure Partners, will also invest around $1.25bn in customer-focused transmission projects.
The approved projects include developments under the Valley Link JV and others within FET’s service territory.
FirstEnergy subsidiaries Potomac Edison, Jersey Central Power & Light (JCP&L), and Keystone Appalachian Transmission Company (KATCo) will allocate an additional $46m for substation upgrades and transmission line reconfigurations in Maryland, New Jersey, and Pennsylvania.
One of the key transmission projects involves constructing approximately 161.5km of 765-kV transmission lines and two substations between Putnam County, West Virginia, and Frederick County, Maryland.
Another project includes building 96.3km of 765kV transmission lines and a substation between Campbell County and Fauquier County, Virginia.
In Ohio, a $217m investment will be used to rebuild 36.6km of 138kV transmission lines across Erie, Lorain, and Ottawa counties.
In Pennsylvania, a $33m investment will be directed toward rebuilding and reconfiguring two 115kV substations in York County.
All projects remain in the early stages of development. The companies will engage with communities, local governments, and other stakeholders throughout the planning process, which includes route assessments and environmental studies.
PJM Interconnection, the regional grid operator, oversees the transmission of wholesale electricity across a 13-state region and the District of Columbia.
The selected transmission upgrades are expected to bolster grid stability, meet growing energy demand, and support economic growth across the region.
