Project deemed vital to relieving transmission congestion, enhancing reliability
WASHINGTON---Pepco Holdings, Inc ((NYSE: POM) today filed applications with the Public Service Commission of Maryland for authorization to construct the Mid-Atlantic Power Pathway (MAPP), a 230-mile 500-kilovolt electric transmission system that will deliver a much-needed boost in system capacity and electric reliability to customers in Maryland and other states in the Mid-Atlantic region.
“This project is vital for ensuring that stable, reliable electricity will be available throughout the region, including the Baltimore-Washington metropolitan area and the Delmarva Peninsula,” said William M. Gausman, PHI Senior Vice President for Asset Management and Planning.
“No major line has been added to the electric transmission backbone in the Mid-Atlantic region in decades, yet the population of the region has risen dramatically and electricity consumption per household has grown significantly, Gausman continued. “The system is stressed. Without MAPP, the region will be exposed to increased risk of experiencing brownouts and blackouts in the future.”
Earlier this week, PHI also submitted a joint federal-state permit application to the Maryland Department of the Environment and the U.S. Army Corps of Engineers. These permits are necessary to build the MAPP transmission line in wetlands and waterways in the project rights-of-way in southern Maryland on the western shore of the Chesapeake Bay.
The project was approved by PJM Interconnection, the regional power grid operator, in 2007. PJM identified MAPP as the most effective transmission solution to address both near-term (five-year) and long-term (15-year) reliability problems facing the Mid-Atlantic region. PHI expects to obtain necessary permits and begin constructing the transmission line late in 2009 and complete it by 2013.
MAPP will extend from Possum Point in northern Virginia, across southern Maryland and the Chesapeake Bay and continuing through the Delmarva Peninsula to Salem, N.J. The project will provide direct benefits to communities along its entire path, Gausman said. They include:
Capital costs for MAPP are estimated at approximately $1.4 billion, including $820 million for the Maryland portion. However, since the project will benefit the entire Mid-Atlantic region, those costs will be paid for by all customers throughout the 14-state PJM region. PHI will also seek low-cost debt financing for the MAPP project from the U.S. Department of Energy under federal loan guarantee programs for capital-intensive projects that use innovative technology.
About PHI: Pepco Holdings, Inc. (NYSE: POM) is one of the largest energy delivery companies in the Mid-Atlantic region, serving about 1.9 million customers in Delaware, the District of Columbia, Maryland and New Jersey. PHI subsidiaries Pepco, Delmarva Power and Atlantic City Electric provide regulated electricity service; Delmarva Power also provides natural gas service. PHI provides competitive wholesale generation services through Conectiv Energy and retail energy products and services through Pepco Energy Services.