Costs rise for a New Jersey transmission project

Dive Brief:

Jersey Central Power & Light this week formally filed an application with the New Jersey Board of Public Utilities to construct a $111 million transmission infrastructure project, dubbed the Monmouth County Reliablity Line, that would include a new 230 kV transmission line, substation enhancements and modern technology upgrades.
The project was originally estimated to cost $75 million, NJ Spotlight notes. It is facing pushback from residents who fear it will depress property values.
News of the higher cost estimates comes just days after PJM Interconnection, which is recommending the JCP&L project move ahead, was forced to suspend another transmission project due to spiraling costs.

Dive Insight:

JCP&L's reliability project would use a New Jersey Transit railroad right-of-way between existing substations to improve service to 214,000 customers in Monmouth County. But the utility is facing pushback on the unpopular project, over concerns it might impact property values, and its filing with state regulators comes just days after costs tanked another transmission project in the region.

PJM Interconnection's Board of Managers last week moved to halt development of the the $272 million Artificial Island transmission project, sending the grid operator back to do additional analysis in the next six months. PJM is also recommending the Monmouth County project be developed.

The new line would run between Aberdeen and Red Bank; the utility's petition includes a real estate study that concludes the project won't impact area property values. The utility said that since announcing the project in May, it has responded to almost 400 inquiries.

"At JCP&L, we're committed to delivering the dependable electricity our customers need to power their homes, businesses and communities," utility President Jim Fakult said in a statement. "This filing marks the completion of many months of planning, design and engineering analysis and contains additional detailed information about the project."

In addition to JCP&L's conclusion the project would not harm property values, the utility also said the line would create almost 250 temporary jobs, deliver economic benefits of $12.6 million in state and local revenues.

The reliability project is part of JCP&L's multi-year, $250 million "Energizing the Future" program which aims to improve reliability on the grid. The utility is hoping to begin construction in August 2017, with a planned in-service date of June 2019.