Three utilities form unique partnership responding to regional energy woes

(The Center Square) — Three utilities are uniquely coming together for the first time to address energy challenges within the PJM Interconnection footprint.

PJM manages the grid and coordinates the movement of wholesale electricity for 13 states, including the Mid-Atlantic and several neighboring Midwestern and Southern states.

Dominion Energy Virginia, American Electric Power and FirstEnergy Corp. – three major, multi-state utility providers active in PJM’s states – are entering into an “innovative joint planning agreement to propose several new regional electric transmission projects,” according to a Dominion press release.

The arrangement is a “first-of-its-kind collaboration,” according to Dominion spokesperson Aaron Ruby, prompted by the singular position in which PJM – and much of America, in fact – finds itself.

A May study by the Americans for a Clean Energy Grid found that the regional transmission organization has to engage in “proactive, scenario-based, long-term planning” if it will meet anticipated energy needs.

The demand for energy is skyrocketing, and projected demand for the next decade will keep multiplying due to ubiquitous electrification and the proliferation of data centers facilitating the AI boom.

States are simultaneously trying to meet ambitious energy and climate goals, which require utilities to retire long-relied-upon forms of energy in favor of less familiar renewables.

Virginia, the “data center capital of the world,” is itself a state-sized picture of the problem. It’s experiencing “the largest growth in power demand since the years following WWII,” according to Ruby, while utilities work to transition to 100% renewable energy by 2050 per the Virginia Clean Economy Act. According to Ruby, Dominion Energy has never seen a time when the demand has been so great in the commonwealth.

“Power demand is growing more than 5% annually and will double in the next 15 years. That’s nearly 5 times more than the growth we experienced over the last 15 years,” Ruby told The Center Square.

This morphing energy landscape is where power providers like Dominion, American Electric and FirstEnergy now find themselves.

“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.”

The companies’ jointly proposed projects include several new 765-kV, 500-kV, and 345-kV transmission lines in Virginia, Ohio and West Virginia, submitted through PJM’s Regional Transmission Expansion Plan process.

Regarding anticipated costs to ratepayers, Ruby says it’s too early to tell. PJM won’t select projects until early 2025, and installation and construction would be years down the road.

“If selected, they would then undergo a multi-year process for route selection, environmental and other field studies, and state and local permitting,” during which time ratepayer impacts would be determined, according to Ruby.

The companies also submitted their proposals for additional transmission projects.