Public Citizen is raising concerns about a transmission project proposed by PJM Interconnection, which would cost ratepayers $546 million. The advocacy group argues that a recent settlement with the Federal Energy Regulatory Commission (FERC) reveals that the expenditures were imprudent, making the allocation of those costs to consumers “unjust and unreasonable.”
The settlement reached on December 5 between Public Service Electric & Gas (PSE&G) and FERC’s enforcement office pertains to the same project that would be financed by ratepayers under PJM’s cost-sharing plan. Public Citizen highlights troubling fraudulent actions by PSE&G and a lack of oversight from PJM, indicating inadequate record-keeping practices.
This objection from Public Citizen comes as scrutiny grows regarding local transmission projects—referred to as supplemental projects in PJM—that often evade thorough regulatory reviews. The protest emerged in reaction to PJM’s annual filing submitted to FERC on December 20, which includes costs for the recently completed 230-kV Roseland-to-Pleasant Valley replacement project that updated a transmission line established nearly 90 years ago.
Prior to PJM’s filing, PSE&G consented to a $6.6 million settlement concerning allegations that it had provided inaccurate information related to the Roseland-to-Pleasant Valley project during the regional transmission expansion planning process in 2017. Reports indicate that in project presentations to PJM, PSE&G claimed that 67 towers required “extensive foundation rehabilitation,” while the actual assessment only identified eight towers needing such work.
Public Citizen expressed alarm over PJM’s approval of a cost recovery rate filing associated with a project already subject to an enforcement order, suggesting this demonstrates PJM’s disregard for maintaining fair rates within its Open Access Transmission Tariff. The group insists that FERC should not take the expenditures for granted as being prudent, especially in light of the recent settlement.
Although the settlement confirmed wrongdoing by PSEG, imposing a civil penalty of $6.6 million, Public Citizen argues that the enforcement action does not sufficiently protect consumers from inflated rates linked to PSEG’s misconduct. The group believes that FERC must recognize PJM’s proposed cost allocation as unjust and unreasonable, advocating for a hearing on the matter.
According to Public Citizen, FERC’s order noted PJM did not conduct independent verification and relied instead on utility presentations, ultimately lacking proper documentation of discussions about the project. The group has previously raised similar concerns, arguing that PJM’s failure to document stakeholder meetings limits transparency and accountability.
In response to Public Citizen’s claims, a spokesperson from PSE&G affirmed that the company intends to “vigorously defend” its actions related to the Roseland-to-Pleasant Valley rebuild. The spokesperson highlighted that prior to its reconstruction, the transmission line had been one of the oldest in the PJM system, with many of its towers originating between 1927 and 1930, and emphasized the improvements brought by the upgraded line, including enhanced capacity and reliability.