Utility Dive•about 1 month ago
AEP eyes exit from PJM, SPP over slow generation interconnection
Key Takeaway
AEP's contemplation of leaving PJM and SPP over interconnection bottlenecks for 63 GW of new load exposes a critical systemic failure impacting developers and large consumers, demanding urgent RTO reform.
AI Summary
- •AEP is considering exiting PJM and SPP due to severe delays in generation interconnection, signaling critical frustration with current RTO processes.
- •AEP's utilities have contracted for an unprecedented 63 GW of new large load by 2030, highlighting massive demand growth, likely driven by datacenters and industrial expansion.
- •This situation underscores significant challenges for developers in PJM and SPP regarding project viability and grid access, and for large loads in securing timely and reliable power.
- •The potential withdrawal of a major utility like AEP could force substantial market and policy reforms within these RTOs, impacting future project development and pricing structures.
Topics
capacity-marketdatacenterinterconnectpjmpolicyqueuespptransmission