Friday, May 26, 2017

PJM Analysis on Artificial Island Project Delayed Again

PJM announced that its comprehensive analysis and recommended solution for issues related to Artificial Island won’t be ready until April.

Staff had expected to present the plan at the February meeting of the RTO’s Board of Managers.

pjm artificial island

“While PJM’s analysis is progressing well, during discussion of preliminary results with stakeholders, several questions and considerations were raised,” PJM’s Steve Herling said in an emailed announcement. “More time is needed to evaluate and respond to these questions and considerations.”

Following complaints over cost allocation and a near doubling of the estimated costs, the board suspended the Artificial Island project, PJM’s first Order 1000 competitive solicitation, pending a “comprehensive” staff analysis to be completed by next month. (See PJM Board Halts Artificial Island Project, Orders Staff Analysis.)

PJM presented preliminary results of its analysis at its Planning Committee meeting in December and concluded that several elements of the scope of work would change. Stakeholders raised concerns about the changes and questioned whether PJM planned to re-evaluate all of the proposals in light of the updated criteria. Herling said at the time that the RTO was only “realistically” focused on the finalists. (See “PJM Review of Artificial Island Bid Elements Completed,” PJM Planning/TEAC Briefs.)

Independent Market Monitor Joe Bowring characterized the decision as a “tough call” and said the extra two months “is not that big a deal.”

– Rory D. Sweeney

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