PATH Seeks to Withdraw From Power Line Project

Reduced electric demand results in suspension of project.

The State Journal
28 February 2011
By Pam Kasey

American Electric Power and FirstEnergy Corp. announced Feb. 28 that they are withdrawing permit applications to build a 765-kilovolt transmission line stretching from Putnam County across West Virginia and Virginia into Maryland.

The announcement came just hours after regional grid manager PJM Interconnection announced plans to suspend the project while it conducts a more rigorous analysis of the need for the line as part of its regional transmission expansion plan.

PJM cited reduced electric demand as the reason for suspending the project.

The Potomac-Appalachian Transmission Highline, or PATH, was a joint venture between Allegheny Energy and AEP to build a 275-mile transmission line. Last week, Allegheny merged with Akron, Ohio-based FirstEnergy.

According to a news release from PATH, the two utility companies filed petitions to withdraw the project in Virginia, Maryland and West Virginia, the three states impacted by the line.

The release said PJM directed the construction of PATH in 2007 to resolve violations of national and local standards for reliable operation of the region’s transmission system. Since then, annual studies reaffirmed the need for PATH as the recommended solution for resolving these issues, according to the release. However, PJM’s latest analyses indicate the need for the project has moved well into the future.

“While we are certainly disappointed by the suspension of PATH and the uncertainties created by the PJM planning process, we do support a thorough and detailed analysis of the need for the project. We remain convinced that the project will be needed and plan to move forward with it when PJM completes its review,” Michael G. Morris, AEP chairman and CEO, stated in the release.

PJM indicated that it will undertake an evaluation of its planning methods through a stakeholder process. This process will evaluate the criteria used to determine the need for transmission projects under its regional transmission expansion plan, and determine whether the need for PATH should be re-evaluated in light of any approved revisions to its planning process.

Once that process is complete, PJM has said it will reassess the need for transmission expansion in the region. Until then, the release said the two companies involved with PATH will immediately suspend most activities on the project except for those that may be necessary to return the project to active status at the conclusion of PJM’s planning process review.

“We are pleased that PJM is evaluating its overall planning process, and we hope that evaluation allows a longer-term view for transmission expansion. In the meantime, we’ll move forward with our other transmission investments including the ETT projects in Texas, our Transco projects within our service territory, and the Prairie Wind project in Kansas that recently received the go-ahead from the Southwest Power Pool,” Morris said.

The PATH project has had its share of detractors. Over the years, people have raised questions about whether the huge line is actually needed and have voiced concern about having high-powered electric lines going through their property. Some people have raised concerns about their property being taken for the highline, while others worried that it would ruin pristine areas and landscapes.