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The Pennsylvania Office of Consumer Advocate (OCA) has urged the PJM Interconnection board to reject a proposed $1.7-billion transmission line by NextEra Energy and Exelon across central Pennsylvania. The 221-mile, 765-kV project, known as Project 237, is part of PJM’s $11.6-billion Regional Transmission Expansion Plan (RTEP), designed to ensure grid reliability by 2030.

In a letter to PJM, the OCA highlighted concerns over uncertain data center and AI load forecasts, suggesting that the project may be premature and potentially overbuilt. The advocate argued that alternatives such as in-state generation, storage, and existing right-of-ways could address projected demand at lower costs.

PJM stated that Project 237 would support load growth in PPL Energy’s territory, help accommodate future generation retirements, and expand the existing 765-kV backbone in the eastern region. However, recent forecast revisions have lowered near-term load growth expectations, raising questions about the immediate need for the new line.

Rising capacity costs linked to projected data center demand have significantly impacted wholesale power prices in the PJM region. From 2024 to 2025, average prices jumped from $55.52/MWh to $82.67/MWh, with capacity costs increasing over 250%. The OCA warns that approval of Project 237 could make it a “poster child” for expensive, unnecessary grid expansion.

PJM’s board has yet to make a final decision on the plan, which will affect residential and commercial electricity customers across the Mid-Atlantic and Midwest.

Source: utilitydive.com