The state agreement approach allows a state or group of states to propose a project that helps implement the state`s public policy requirements, provided that the state (or states) agree to bear all the costs of a state-selected expansion included in the Regional Transportation Expansion Plan (RTEP). Most RTEP projects have been determined by criteria of market reliability or efficiency. The study agreement adopted by the Commission covers the planning studies that PJM will carry out in order to identify system improvements for interconnection and to ensure the availability of offshore wind power generation capacity at specific interconnection points with the transmission system. The agreement also provides for a competitive proposal window (which will open in the first quarter of 2021) to seek proposals for transportation projects that facilitate New Jersey`s offshore wind targets. This window process will be consistent with the JMP processes for each comparable competition proposal window. B for example for those who are summoned to remedy breaches of reliability criteria or market efficiency factors. This is the first time that a jurisdiction within PJM`s footprint has asked PJM to initiate the state agreement approach contained in PJM`s operating agreement. This process provides an opportunity for States to conclude contracts for the transport facilities needed to advance their specific energy goals and objectives. The SAA 2021 process in New Jersey will be a unique competitive transmission process that underscores New Jersey`s commitment to offshore wind energy development.
Not only will this approach improve the state`s offshore wind program, but increased competition in this way will reduce costs, save consumers money, reduce risk, encourage innovation, and significantly reduce the environmental footprint of new transmission lines. “This is a first step in building a gearbox to advance New Jersey`s offshore wind targets,” said Asim Haque, vice president of state and member services. I would like to thank the New Jersey Board of Public Utilities for working with our planning team and our new State Policy Solutions unit. PJM remains committed to working with all of our states to help them achieve their energy goals.” At the request of the New Jersey Legislature and Governor Murphy`s Energy Master Plan, NJBPU is working to expand the state`s electric transmission system to enable the expansion of 7,500 MW of offshore wind by 2035. The state has also taken significant steps to ensure that the wind energy produced can reach New Jersey consumers in the most cost-effective, efficient and environmentally friendly way. To achieve this goal, NJBPU asked PJM Interconnection (PJM) in November 2020 to integrate New Jersey`s offshore wind targets into the regional transportation planning process, becoming the first state to use a new regulatory pathway known as the State Agreement Approach (SAA). “This collaboration represents PJM`s ongoing commitment to helping our states advance their political goals,” said Manu Asthana, President and CEO of PJM. “We are pleased to be able to help New Jersey advance its Energy Master Plan and Offshore Wind Strategic Plan goal in coordination with the Offshore Wind Economic Development Act.” The study agreement implements the New Jersey Board of Public Utilities` requirement that PJM meet New Jersey`s policy requirements to integrate 7,500 megawatts of offshore wind energy into the Regional Transportation Expansion Plan (RTEP).
of PJM by 2035. via the PJM State Agreement approach. PJM and the New Jersey Board of Public Utilities announced on August 18. November, an important step to help the State of New Jersey advance its ambitious offshore wind goals through an existing but never-before-used deployment of PJM`s transportation planning process. New Jersey is the first state in PJM`s footprint to ask PJM to initiate the state agreement approach, a process included in PJM`s operating agreement. The Federal Energy Regulatory Commission accepted the study agreement between PJM and the New Jersey Board of Public Utilities on February 16, marking an important first step in achieving New Jersey`s offshore wind targets. Under the terms of the agreement, after closing the window, PJM will analyze the submitted project proposals and make recommendations to the New Jersey Board of Public Utilities, which will ultimately decide to choose from the submitted projects. In adopting the study agreement, the Commission noted that the agreement provides stakeholders with transparency regarding the milestones of the state agreement approach process and the inclusion of New Jersey`s strategic objectives in the 2020-2021 RTEP cycle. “PJM has worked hard to help us implement this critical element of Governor Murphy`s energy master plan,” said Joseph L.
Fiordaliso, chairman of the New Jersey Board of Public Utilities. “We appreciate the expertise and proven competitive transfer planning process that PJM brings to the table and appreciate their proven commitment to supporting New Jersey in these efforts.” At the request of the New Jersey Board of Public Utilities, which was unanimously approved today, PJM will include New Jersey`s needs in a competition window that will open in the first quarter of 2021. Transmission system developers can make proposals to achieve New Jersey`s goal of facilitating the infrastructure needed to provide a goal of up to 7,500 MW of offshore wind to consumers over the next 15 years. Bidders proposed transportation projects to support New Jersey`s offshore wind industry through the PJM Competition Planning Process website, which also lists tender documents. The call closed on September 17, 2021. The state agreement approach planning process allows New Jersey to leverage PJM`s competitive process to explore options for developing a reliable and cost-effective offshore wind transportation solution. Transportation component options include network-to-land substations, onshore substations to offshore collector farms, and offshore transmission on the 24th. In September 2021, staff released the 2021 State Agreement Approach Process Guidance Document to provide more details on the next steps in the assessment process and the timeline. Closing the application window begins with a multi-month evaluation process during which NJBPU and PJM review all proposals and determine which, if any, are best suited to New Jersey`s needs and represent the best value for New Jersey consumers. Today`s vote by the NJBPU is a very exciting moment in our clean energy revolution here in New Jersey,” Fiordaliso said at Wednesday`s board meeting. After extensive consultations with the PJM States Organization, PJM incorporated the state agreement approach into its corporate agreement seven years ago when implementing The Federal Energy Regulatory Commission`s Regulation 1000.
In that order, FERC required regional system operators to “take into account transmission needs determined by public policy requirements in regional transmission planning processes […].