PJM Chooses AEP, Dominion, FirstEnergy for Joint Transmission Projects
Regional grid operator PJM Interconnection has announced the selection of multiple electric transmission projects to be developed jointly by American Electric Power through its Transource Energy affiliate, along with Dominion Energy and FirstEnergy Transmission, LLC. These projects will span multiple states within the PJM footprint and are aimed at enhancing grid reliability, economic development, and energy delivery to millions of customers.
Background and Selection Process
PJM Interconnection is the regional transmission organization responsible for coordinating the transportation of wholesale electricity across a 13-state region, including Virginia, West Virginia, and Maryland. The organization oversees planning and development to ensure the grid remains stable, efficient, and capable of meeting increasing energy demands.
The selection of these transmission projects followed PJM’s Regional Transmission Expansion Plan (RTEP) Open Window process, in which energy companies submit proposals for transmission enhancements. AEP, Dominion Energy, and FirstEnergy jointly proposed their projects in September 2024, and the PJM Board of Managers officially awarded them in February 2025.
The RTEP process is designed to identify, assess, and implement transmission solutions that improve system reliability, accommodate growth, and support the changing energy landscape. The joint venture’s proposals were selected based on their potential to address critical reliability concerns and ensure long-term power stability. The decision followed a thorough evaluation of multiple competing proposals, with PJM determining that these projects best met the region’s current and future electricity needs.
The Formation of Valley Link Transmission Company
To facilitate the efficient execution of the awarded projects, AEP, Dominion Energy, and FirstEnergy have formed a new joint venture, Valley Link Transmission Company, LLC. This collaboration allows the three companies to pool their expertise, financial resources, and technical capabilities to build essential infrastructure projects in a cost-effective and timely manner.
The establishment of Valley Link Transmission Company underscores the growing importance of strategic partnerships in addressing the complexities of modern energy demands. By joining forces, these companies can maximize efficiencies, optimize the use of existing assets, and implement advanced technological solutions to enhance grid performance.
Statements from Leadership
Executives from the participating companies have emphasized the importance of these projects and their commitment to ensuring reliable power delivery.
Bob Bradish, Senior Vice President of Regulated Infrastructure Investment Planning for AEP, highlighted the company’s extensive experience in handling large-scale transmission initiatives.
“AEP has decades of experience with projects of the size and scope needed to serve the unprecedented growth in energy demand,” Bradish said. “This joint venture is a unique solution to addressing the needs of our customers and ensuring long-term reliability and continued economic growth opportunities in the region.”
Dominion Energy Virginia’s President of Utility Operations, Ed Baine, echoed similar sentiments, emphasizing the projects’ role in fostering regional economic stability.
“These projects are essential for the economic vitality of our region, the reliability of our grid, and the everyday lives of our customers,” Baine stated. “These are comprehensive solutions needed to reliably serve the growing needs of our customers, and we thank PJM for their thorough review.”
Mark Mroczynski, President of Transmission at FirstEnergy, underscored the benefits of a collaborative approach.
“By leveraging the collective expertise of our three companies, we have the opportunity to build robust transmission facilities that will address documented reliability concerns on the regional power grid,” Mroczynski said. “While we’re in the very early stages, we look forward to engaging with communities and stakeholders in the months ahead to discuss the need for these projects and listen to the ideas and concerns of our customers.”
Details of the Selected Transmission Projects
The transmission projects approved by PJM aim to address grid reliability, accommodate increasing power loads, and enhance the resilience of the electrical infrastructure. The selected initiatives include:
- A 260-mile, 765-kilovolt (kV) transmission line and two new substations between Putnam County, West Virginia, and Frederick County, Maryland. This segment will strengthen the connection between two critical regions, facilitating the efficient transfer of electricity and preventing overload scenarios.
- A 155-mile, 765-kV transmission line and a new substation between Campbell County, Virginia, and Fauquier County, Virginia. This component of the project will enhance power distribution in the central and northern parts of the state, supporting growing residential and industrial demands.
- A new substation in Caroline County, Virginia, designed to improve the reliability and capacity of the local grid, ensuring a stable power supply for businesses and homes in the area.
These projects collectively represent a significant investment in energy infrastructure and a commitment to modernizing the transmission network to meet evolving energy needs.
Development Timeline and Community Engagement
The projects are currently in the early stages of development, with no fixed time frame yet for permitting, regulatory approvals, or construction. The next steps involve extensive planning, including environmental impact assessments, route selection, and coordination with regulatory agencies.
As part of their commitment to transparency and community engagement, AEP, Dominion Energy, and FirstEnergy will collaborate closely with local governments, residents, and stakeholders in the project areas. Community input is a vital aspect of the planning process, helping to identify potential concerns and refine project details to minimize disruptions.
Public meetings, stakeholder consultations, and environmental reviews will be conducted throughout 2025 to ensure that the projects align with regional development priorities while addressing potential challenges. The companies are dedicated to maintaining open lines of communication with affected communities, fostering partnerships that support responsible infrastructure growth.
Additional Transmission Projects by Individual Companies
In addition to the jointly developed projects, PJM has also selected several other transmission initiatives that will be developed independently by AEP, Dominion Energy, and FirstEnergy within their respective service areas. These projects will complement the Valley Link Transmission Company’s work by further strengthening the regional grid.
While specific details about these additional projects have yet to be disclosed, they are expected to focus on localized grid improvements, infrastructure upgrades, and the integration of renewable energy resources.
The Broader Impact of the Transmission Projects
The selected transmission projects represent a critical step in addressing the evolving energy landscape in the PJM region. As demand for electricity continues to rise due to population growth, economic expansion, and the increasing adoption of electric vehicles and renewable energy sources, robust transmission infrastructure is essential for ensuring grid stability and efficiency.
Furthermore, these projects align with broader industry trends toward decarbonization and sustainability. By modernizing the transmission network and reducing congestion, they support the integration of renewable energy resources, enabling a more resilient and environmentally friendly power system.
