Slack Power Demand Delays Major Transmission Projects

The recession-driven slump in power demand is jeopardizing the timeline for three planned major transmission projects in the eastern U.S.

Following PJM Interconnection’s submission to regulators of a preliminary transmission-needs outlook, Allegheny Energy Inc. and American Electric Power Co. Inc withdrew an application for a $1.8 billion transmission line between West Virginia and Maryland.

Previous estimates had concluded the line would be needed by 2012 or 2013. But following a two-year overall drop in electricity consumption in the U.S., newer numbers push the date farther out—closer to 2016, according to Dow-Jones.

Pepco Holdings also asked Maryland regulators to suspend review of a $1.2 billion transmission project in that state.

Pending a review of these developments, regulators in New Jersey have decided to delay a vote on its section of a proposed line by Public Service Enterprise Group Inc. and PPL Corp.

Still, most utilities say the transmission work is being delayed rather than canceled.

PJM is in the process of conducting a more comprehensive study, to be released early this summer.

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