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First Energy Requests Abandonment Incentive

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On April 2, 2019 in Docket No. ER19-1515, First Energy, on behalf of on behalf of its affiliates American Transmission Systems, Incorporated (“ATSI”), Mid-Atlantic Interstate Transmission, LLC (“MAIT”) and the West Penn Power Company (“West Penn”) requested the Abandonment Incentive for transmission upgrades required to resolve certain of the reliability violations as a result of generator deactivations (“Generator Deactivation Project”), if the Project is abandoned or cancelled, in whole or in part, for reasons beyond the control of the Applicants.  Duquesne recently requested the Abandonment and CWIP incentives for its portion of the upgrades.    

 

In August 2018, Bruce Mansfield 1, 2, and 3 (2,490 MW), Eastlake 6 (24 MW), Sammis Diesel (13 MW), Sammis 5, 6 and 7 (1,491 MW) notified PJM of their intent to deactivate on June 1, 2021 or June 1, 2022.  Following this initial announcement, Bruce Mansfield 1 and 2 then announced on November 7, 2018, an accelerated retirement date of February 5, 2019.  Consequently, PJM determined that the system enhancements that comprise the Generator Deactivation Project are necessary to maintain reliability. PJM designated the First Energy affiliates, as PJM Transmission Owners, as the entities responsible for constructing the necessary upgrades because the upgrades are to be built in their respective service territories.  The Generator Deactivation Project serves a single combined purpose of ensuring reliability by resolving generator deliverability violations as a result of generator retirements.  The Project includes transformer replacement, breaker construction and replacement, and extensive reconductoring, spanning three transmission owner zones with a total estimated cost of $91.7 million.

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