In a first-of-its-kind collaboration, three major utilities — Dominion Energy Virginia, American Electric Power, and FirstEnergy Corp. — have come together to address the growing energy challenges within the PJM Interconnection footprint. These companies have proposed several regional electric transmission projects aimed at enhancing grid reliability and meeting future energy demands. PJM Interconnection oversees the movement of wholesale electricity across 13 states, primarily in the Mid-Atlantic and extending into parts of the Midwest and South.
The utilities’ joint planning agreement, announced in a press release from Dominion Energy, represents an innovative approach to meeting the region’s escalating energy needs. This collaboration is the result of increasing demand for electricity, driven by the rise of electrification and the expansion of data centers, particularly those supporting the artificial intelligence boom.
PJM’s regional footprint includes some of the nation’s most densely populated areas, where demand for power is expected to multiply significantly in the coming decade. A recent study by Americans for a Clean Energy Grid stressed the importance of PJM engaging in “proactive, scenario-based, long-term planning” to address the anticipated surge in electricity usage. As states in the PJM region pursue ambitious clean energy goals, utilities are being pushed to transition from traditional energy sources to renewable alternatives, creating further strain on the grid.
Virginia, known as the “data center capital of the world,” is a microcosm of the challenges utilities face across the PJM region. Aaron Ruby, a spokesperson for Dominion Energy, said that Virginia is experiencing “the largest growth in power demand since the years following WWII.” According to Ruby, power demand in the state is growing at an annual rate of more than 5% and is projected to double over the next 15 years — a growth rate that is nearly five times higher than what the state has seen over the past 15 years.
The joint effort by Dominion Energy, American Electric Power, and FirstEnergy is seen as a necessary step to address these increasing pressures on the grid. The companies’ proposal includes the construction of several new high-voltage transmission lines — specifically, 765-kilovolt (kV), 500-kV, and 345-kV lines — in key areas of Virginia, Ohio, and West Virginia. These projects were submitted to PJM’s Regional Transmission Expansion Plan (RTEP), a critical part of maintaining grid reliability in the face of growing demand.
Ed Baine, president of Dominion Energy Virginia, highlighted the significance of this collaboration, stating that the dynamic energy landscape requires more regional cooperation to build large-scale transmission infrastructure. “By leveraging the expertise and resources of three industry leaders whose transmission zones border one another, we’re better able to develop superior and more cost-effective solutions required to effectively resolve reliability issues across the PJM region,” Baine said.
The rapid pace of electrification and the shift to renewable energy has created unique challenges for utilities operating within PJM’s territory. As states move toward meeting their energy and climate goals, power providers are tasked with balancing the retirement of older, traditional energy sources with the integration of less familiar renewable options. The joint planning agreement aims to address these challenges by proposing large-scale infrastructure improvements that can support the region’s evolving energy needs.
Despite the urgency of the situation, it remains too early to determine the financial impact these projects will have on consumers. According to Ruby, PJM is not expected to select projects until early 2025. Even then, the installation and construction of the proposed transmission lines would take several more years to complete. Ruby explained that “if selected, they would then undergo a multi-year process for route selection, environmental and other field studies, and state and local permitting,” during which the cost implications for ratepayers would be evaluated.
In addition to the joint projects, Dominion Energy, American Electric Power, and FirstEnergy have also submitted proposals for other transmission initiatives to PJM, indicating a continued focus on improving the region’s energy infrastructure.
As PJM faces increasing demand and the challenge of integrating more renewable energy into the grid, the partnership between these three utilities represents a forward-looking approach to ensuring reliable and sustainable energy for the future.
