PJM selects regional transmission projects to be jointly developed by Dominion Energy, American Electric Power, FirstEnergy
MWN-AI** Summary
PJM Interconnection has selected several transmission projects to be jointly developed by Dominion Energy, American Electric Power (AEP), and FirstEnergy across Virginia, West Virginia, and Maryland. This decision follows the companies' submission of proposals through PJM's Regional Transmission Expansion Plan (RTEP) Open Window process in September 2024, with the PJM Board recently awarding them the projects. These initiatives aim to enhance the reliability of the region's power grid, which is increasingly challenged by growing demand.
The joint venture, formed as Valley Link Transmission Company, LLC, will see the construction of significant infrastructure, including approximately 260 miles of 765-kilovolt transmission lines and two substations between West Virginia and Maryland, and an additional 155 miles of transmission lines in Virginia. The overarching goal of these projects is to bolster grid resiliency and capacity while supporting economic development in the area.
Dominion Energy's President of Utility Operations, Ed Baine, emphasized that the initiatives are crucial for the economic vitality of the region and reliability of energy services to customers. Similarly, executives from AEP and FirstEnergy highlighted their commitment to leveraging their collective expertise in developing robust solutions to meet documented reliability concerns.
The projects are currently in early development stages, with detailed plans for permitting and regulatory approvals expected soon. Community engagement will be vital as they move forward, ensuring local stakeholders are informed and involved throughout the process. In addition to these joint projects, PJM has also selected several individual projects for each company to develop, aimed at enhancing overall service reliability across the PJM network.
MWN-AI** Analysis
PJM Interconnection’s selection of joint transmission projects to be developed by Dominion Energy, American Electric Power (AEP), and FirstEnergy marks a significant milestone in addressing the growing energy demands in Virginia, West Virginia, and Maryland. The Valley Link Transmission Company, formed by these three entities, will spearhead the development of crucial infrastructure projects designed to enhance grid reliability and facilitate regional economic growth.
Investors should view this collaboration as a strategic move to position themselves in a growing sector. The projects, including approximately 415 miles of high-capacity 765-kilovolt transmission lines, are designed to bolster the regional grid’s resiliency, ultimately creating an opportunity for increased generation capacity in renewable sources. This aligns with the energy transition towards cleaner technologies—a trend that is gaining momentum, making energy companies with robust infrastructure plans more attractive.
While the projects are in their early stages—with permitting, regulatory approvals, and detailed planning forthcoming—investors may consider the potential for long-term returns via dividends or stock appreciation from companies poised to benefit from increased demand and infrastructure investment. Dominion Energy's footprint in offshore wind and clean energy complements the ongoing transition towards renewable resources, making it a noteworthy candidate for investment.
Furthermore, AEP’s projected $54 billion investment from 2025 to 2029 suggests a commitment to enhancing service delivery, which could yield robust returns as energy demand continues to grow. As these companies engage with communities and stakeholders, transparency and collaboration may lead to positive public sentiment and regulatory support, mitigating potential project delays.
In summary, investors should keep a close eye on the developments from this joint initiative as they position themselves within the shifting landscape of energy infrastructure, which promises not only economic benefits but also increased reliability for consumers.
**MWN-AI Summary and Analysis is based on asking OpenAI to summarize and analyze this news release.
- Companies will jointly develop transmission projects in Virginia, West Virginia and Maryland to reliably serve the region’s growing power demand
- Needed transmission reliability investments will also increase the grid’s resiliency and capacity to support new generation
- Projects are in the early stages of development, with more detailed plans for permitting, regulatory approvals and public participation expected in the coming months
Regional grid operator PJM Interconnection has selected several electric transmission projects that will be jointly developed by Dominion Energy, American Electric Power Company through its Transource Energy affiliate and FirstEnergy Transmission, LLC across multiple states within the PJM footprint.
The companies jointly proposed the projects through PJM’s Regional Transmission Expansion Plan (RTEP) Open Window process in September 2024, and yesterday they were awarded by the PJM Board of Managers. PJM is the regional transmission organization that coordinates the transportation of wholesale electricity across the 13-state region that includes Virginia, West Virginia and Maryland.
The companies will develop the projects through the recently formed Valley Link Transmission Company, LLC joint venture. The innovative collaboration will leverage the companies’ collective expertise and resources to deliver comprehensive and cost-effective solutions that address the region’s growing power needs.
After a lengthy review process, PJM determined the joint venture’s proposed projects, among others, best met the reliability needs of the grid. The projects will support economic development while ensuring every customer has the energy they rely on every day.
“These projects are essential for the economic vitality of our region, the reliability of our grid and the everyday lives of our customers,” said Ed Baine, President of Utility Operations and Dominion Energy Virginia. “These are comprehensive solutions needed to reliably serve the growing needs of our customers, and we thank PJM for their thorough review.”
“By leveraging the collective expertise of our three companies, we have the opportunity to build robust transmission facilities that will address documented reliability concerns on the regional power grid,” said Mark Mroczynski, President, Transmission at FirstEnergy. “While we’re in the very early stages, we look forward to engaging with communities and stakeholders in the months ahead to discuss the need for these projects and listen to the ideas and concerns of our customers.”
“AEP has decades of experience with projects of the size and scope needed to serve the unprecedented growth in energy demand,” said Bob Bradish, senior vice president, Regulated Infrastructure Investment Planning for AEP. “This joint venture is a unique solution to addressing the needs of our customers and ensuring long-term reliability and continued economic growth opportunities in the region.”
The selected projects include:
- Building approximately 260 miles of 765-kilovolt (kV) transmission line and two substations between Putnam County, West Virginia and Frederick County, Maryland.
- Building approximately 155 miles of 765-kV transmission line and a substation between Campbell County, Virginia and Fauquier County, Virginia.
- Building a new substation in Caroline County, Virginia.
The projects are in the early stages of development and do not have a firm time frame yet for permitting, regulatory approvals and construction. Following PJM’s recent awards, the companies will advance the development of project details, which includes assessing potential routes and conducting thorough environmental studies.
The companies are committed to collaborating with residents, local governments and other stakeholders in the project communities at every stage of the process. Community engagement is crucial for making informed decisions that reduce or prevent potential impacts.
In addition to the jointly developed projects, PJM selected several other transmission projects that will be developed individually by each of the three companies in their service areas.
About Dominion Energy
Dominion Energy (NYSE: D), headquartered in Richmond, Va., provides regulated electricity service to 3.6 million homes and businesses in Virginia, North Carolina, and South Carolina, and regulated natural gas service to 500,000 customers in South Carolina. The company is one of the nation’s leading developers and operators of regulated offshore wind and solar power and the largest producer of carbon-free electricity in New England . The company’s mission is to provide the reliable, affordable, and increasingly clean energy that powers its customers every day. Please visit DominionEnergy.com to learn more.
About AEP
Our team at American Electric Power (Nasdaq: AEP) is committed to improving our customers' lives with reliable, affordable power. We are investing $54 billion from 2025 through 2029 to enhance service for customers and support the growing energy needs of our communities. Our nearly 16,000 employees operate and maintain the nation’s largest electric transmission system with 40,000 line miles, along with more than 225,000 miles of distribution lines to deliver energy to 5.6 million customers in 11 states. AEP also is one of the nation's largest electricity producers with approximately 29,000 megawatts of diverse generating capacity. We are focused on safety and operational excellence, creating value for our stakeholders and bringing opportunity to our service territory through economic development and community engagement. AEP participates in the competitive transmission space through Transource, a jointly owned transmission company with Evergy, Inc., headquartered in Kansas City, Missouri.
About FirstEnergy
FirstEnergy Corp. (NYSE: FE) is dedicated to integrity, safety, reliability and operational excellence. Its electric distribution companies form one of the nation’s largest investor-owned electric systems, serving more than six million customers in Ohio, Pennsylvania, New Jersey, West Virginia, Maryland and New York. The company’s transmission subsidiaries, which include FirstEnergy Transmission, LLC (FET), operate approximately 24,000 miles of transmission lines that connect the Midwest and Mid-Atlantic regions. Follow FirstEnergy online at firstenergycorp.com and on X @FirstEnergyCorp .
Jointly owned by FirstEnergy and Brookfield Super-Core Infrastructure Partners, FET is the equity investor in Valley Link Transmission, LLC. FET owns and operates American Transmission Systems Inc. (ATSI), Mid-Atlantic Interstate Transmission (MAIT) and Trans-Allegheny Interstate Transmission Line Inc. (TrAILCo.)
News Category: Virginia & North Carolina
Forward-Looking Statements
This release contains certain forward-looking statements that are subject to a variety of factors that could cause actual events or results to differ from those included in these statements. These factors are identified in Dominion Energy's Forms 10-K and 10-Q filed with the U.S. Securities and Exchange Commission. Dominion Energy refers readers to those discusses for further information. Any forward-looking statement speaks only as of the date on which it is made, and Dominion Energy undertakes no obligation to update any forward-looking statement to reflect events or circumstances occurring after the date on which it is made.
View source version on businesswire.com: https://www.businesswire.com/news/home/20250226087108/en/
Dominion Energy: Jason Williams, 804-292-4929, jason.e.williams@dominionenergy.com
FirstEnergy: Will Boye, 301-790-6420, wboye@firstenergycorp.com
American Electric Power: Scott Blake, 614-716-1938, ssblake@aep.com
Investor contacts:
Dominion Energy: David McFarland, 804-339-1173, david.m.mcfarland@dominionenergy.com
FirstEnergy: Karen Sagot, 330-761-4286, ksagot@firstenergycorp.com
American Electric Power: Darcy Reese, 614-716-2614, dlreese@aep.com
FAQ**
How will the joint venture between Dominion Energy Inc. D, American Electric Power Company, and FirstEnergy Transmission LLC enhance the reliability of the power grid in Virginia, West Virginia, and Maryland amidst growing energy demands?
What are the anticipated economic benefits for the communities involved in the transmission projects being developed by Dominion Energy Inc. D and its partners through the Valley Link Transmission Company, LLC?
Can you provide insights on the regulatory challenges that Dominion Energy Inc. D, along with its joint development partners, might face in the permitting process for these large-scale transmission projects?
What measures will Dominion Energy Inc. D and its partners take to engage local stakeholders during the development stages of these transmission projects to address community concerns effectively?
**MWN-AI FAQ is based on asking OpenAI questions about Dominion Energy Inc. (NYSE: D).
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