Utility regulators in Pennsylvania seemed unlikely Thursday to convince a federal appeals court that they hadn’t violated the Constitution by denying an application for a regional electric transmission project.
During oral arguments, a three-judge panel on the 3rd U.S. Circuit Court of Appeals appeared highly skeptical that the Pennsylvania Public Utility Commission could block an interstate transmission line that was deemed necessary by regional grid operator PJM Interconnection.
PJM found that Project 9A was economically justified because it would help relieve congestion in the grid that has led to higher wholesale electricity prices in Maryland, Virginia and the District of Columbia. However, the project is expected to lead to higher wholesale prices in Pennsylvania, prompting the state’s regulators to oppose the project.
The 3rd Circuit questioned whether the Pennsylvania PUC could overrule PJM and regional planning overseen by the Federal Energy Regulatory Commission.
