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Commissioner Cheryl A. LaFleur Statement
June 16, 2015
Docket No. EL15-40-000
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PSEG v. PJM Complaint

“I support today’s order, which denies a complaint by Public Service Electric and Gas Company against PJM Interconnection, L.L.C. (PJM) concerning PJM’s Artificial Island competitive solicitation. The order correctly concludes that PJM was not required to follow its Order No. 1000 procedures when conducting the Artificial Island solicitation, and that PJM complied with its pre-Order No. 1000 tariff rules in conducting that solicitation.

“I write separately because, though the Commission finds that the Order No. 1000 competitive solicitation procedures did not govern the Artificial Island solicitation, this case presents an opportunity to consider more generally the implementation of Order No. 1000’s competitive solicitation procedures in PJM and other regions throughout the country.

“One of Order No. 1000’s key goals was to harness the benefits of competition in transmission development for customers, and it is important that, as regions implement their Order No. 1000 procedures, we do not lose sight of that goal: facilitating the identification, development, and ultimately the construction of more efficient or cost-effective transmission projects that are better for customers. Order No. 1000’s competitive solicitation processes – and in some cases, the mere prospect of competitive solicitation processes – have already led to a host of innovative rate structures and cost containment proposals that, if properly designed, could provide significant benefits for customers. I believe that these efforts should be encouraged, both by the Commission and in the regional transmission planning processes, to foster a dynamic environment for new transmission development.

“As demonstrated by the broad diversity in how regions around the country conduct their Order No. 1000 transmission planning, Order No. 1000 provides significant flexibility for regional transmission planning processes (provided that those processes comply with the rule’s requirements), and therefore does not mandate any particular planning structure, let alone a rigid planning structure that would inhibit innovative transmission proposals. Accordingly, as regions around the country gain experience with competitive processes, I encourage them to learn from their and other regions’ experiences to ensure that their procedures evolve as appropriate to help realize the full benefits of competitive transmission development for customers.

“Accordingly, I respectfully concur.”