Dive Brief:

• Maryland Gov. Larry Hogan (R) and Delaware Gov. Jack Markell (D) have asked the Federal Energy Regulatory Commission (FERC) to reverse course on the cost allocation for PJM's $272 million Artificial Island transmission project, arguing that most of the benefits will flow to New Jersey while residents of their states shoulder 90% of the costs, the Baltimore Sun reports.  
• Artificial Island includes the Salem Nuclear units 1 and 2, and Hope Creek unit 1. The project would add transmission capacity from the plants, but the opposing governors say the plan poses too high a burden on residents of the Delmarva Penninsula.
• The governors believe PJM’s proposal would require residents in both states to pay nearly 90% of the costs, but would see little benefit.

Dive Insight:

Plans to boost transmission reliability from New Jersey's Artificial Island have been in the works for years now. FERC approved the cost structure in a 3-1 vote,  but The Baltimore Sun reports Commissioner Cheryl LaFleur protested for some of the same reasons Delaware and Maryland are opposing the decision, saying the commission used a rigid formula for its cost/benefit analysis that did not apply in the case.

Hogan said his state would join together with Markell's to protest the allocation, "which would disproportionately cost Maryland and Delaware residents hundreds of millions of dollars for power they are not receiving."

"We have expressed our disappointment, frustration, and opposition to the Federal Energy Regulatory Commission this week and we have let the agency know that we are going to use every tool at our disposal to reverse this regrettable and improper decision," Hogan said in a statement. 

Last week, FERC granted an appeal requested by Markell, and the Maryland and Delaware Public Service Commissions, to reconsider the issue. Markell had previously written to the PJM board as well as FERC stating the cost allocation was inequitable and unreasonable.

“It’s imperative that FERC resolve this issue without delay and before the project moves too far along,” Markell said. “Planning for construction is already underway and uncertainty about electricity costs can impact economic development."

"This plan isn't right, and it isn't fair," they wrote to FERC Chair Norman Bay. A copy of the Governors' letter can be found here.