PUC Raises Cost, Other Concerns With Proposed 222 Mile Kammer Juniata Electric Transmission Line Project Going Through 10 PA Counties [To Help Feed A.I. Data Center Demands In Eastern PA]

[The counties include Greene, Fayette, Westmoreland, Indiana, Cambria, Blair, Huntingdon, Mifflin, Juniata and Perry.

[The proposal is the latest mega-project tied to the development of data centers for artificial intelligence in Pennsylvania: One of the transmission line’s primary goals would be to help satisfy the expected electricity demand for new computing power in the eastern half of the state that could put dangerous strain on the grid by 2032, according to reporting by the Pittsburgh Post-Gazette.]

The Commission’s filing addresses a request by Kammer Juniata Transmission, LLC, a joint project of NextEra Energy Transmission and Exelon Corporation, for federal approval of a formula rate structure and multiple financial incentives tied to the development of the project.

“The combined package of incentives requested is not tailored to address risks or challenges faced by the applicant and, if granted, will likely result in unjust and unreasonable rates for consumers,” the PUC Commissioners noted in their comments. “Pennsylvanians would be ill-served by a final selection occurring until all possible alternatives have been thoroughly evaluated in a more transparent manner.”

In its comments to federal regulators, the PUC emphasizes the potential impact on consumers and questions whether the requested incentives are appropriate at this stage of the project.

The proposed project would involve construction of new transmission infrastructure through largely undeveloped corridors, raising both cost and siting considerations.

The PUC notes that the project has not yet undergone required state-level review processes in Pennsylvania or West Virginia, including applications for Certificates of Public Convenience required to provide public utility service.

“Absent an evaluation at the state level regarding need, siting, and public interest, the Commission (FERC) should withhold incentives to a transmission project,” the PUC comments stressed. “Allowing these incentives could substantially increase the risk of customers ultimately paying for transmission facilities that are never built and from which they derive no benefit.”

The PUC’s comments also raise concerns about how the project was selected through the regional transmission planning process, including whether sufficient alternatives were considered and whether the timeline allowed for meaningful competition.

In addition, the Commission cautions that several of the requested financial incentives– such as recovery of construction costs before the project is completed or reimbursement for abandoned projects– could shift financial risk from developers to ratepayers.

The PUC also highlights the importance of aligning federal decisions with state regulatory processes, noting that state commissions are responsible for evaluating whether projects are necessary, appropriately designed, and in the public interest.

Overall, the Commission urges FERC to deny the requested incentives unless and until the project has received necessary state approvals and a more complete evaluation of its costs, benefits, and alternatives has been conducted.

Click Here for the full PUC comments filed with FERC.

Click Here for the PUC announcement.

(Map: Observer-Reporter.)

Resource Links:

— Observer-Reporter: $1.7 Billion High Voltage Power Line Project To Cross Greene, Fayette, 8 Other PA Counties To Feed A.I. Data Centers; Consumer Advocate Opposes As Too Costly, Violates President’s Bring Your Own Power Policy [PDF of Article]

— Post-Gazette – Laura Legere: Electric Power ‘Superhighway’ Proposed To Cut Across 200 Miles Of Southwestern And Central PA [PDF of Article]

Tags

PUC Raises Cost, Other Concerns With Proposed 222 Mile Kammer Juniata Electric Transmission Line Project Going Through 10 PA Counties [To Help Feed A.I. Data Center Demands In Eastern PA]