May 15, 2025

FERC denies key rate request for $3B Valley Link Transmission Project, launches inquiry

The split decision seeks to strike a balance between incentivizing transmission development with consumer protection, setting a potential precedent for future projects.

Green Light, Mostly: FERC approved some incentives for the 417-mile Valley Link Transmission Project, a joint venture between Transource Energy LLC (a joint venture of American Electric Power Company Inc. and Evergy Inc.), FirstEnergy Corp., and Dominion Energy Inc., while denying its proposed return on equity, and initiating a rate inquiry, according to a May 13 order. The project is ...

Details:

Filing Date: May 13, 2025

Docket Numbers:

ER25-1633

Short Summary:

FERC approved some incentives for the 417-mile Valley Link Transmission Project, a joint venture between Transource Energy LLC (a joint venture of American Electric Power Company Inc. and Evergy Inc.), FirstEnergy Corp., and Dominion Energy Inc., while denying its proposed return on equity and initiating a rate inquiry, according to a May 13 order. The project is designed to address reliability issues in PJM arising from surging power demand from data centers.

Impact Level:

Categories:

Rate & Tariff Tracker

Tags: Grid Reliability, Ratepayer Impacts, Return on Equity, Transmission Planning, Transmission Projects, Transmission Rate Incentives

Entities: American Electric Power Company Inc., Dominion Energy Inc., Evergy Inc., FirstEnergy Corp.

Markets: PJM Interconnection (PJM)

Regions: Mid-Atlantic & Midwest

States: Maryland, Virginia, West Virginia

Regulators: FERC

Courts:

Documents:

Order