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PJM told the Federal Energy Regulatory Commission last week that it should reject an attempt by Consolidated Edison Co. Con Edison says PJM’s cost allocation unfairly assigns $629 million of the cost to it as a result of the Con Ed-PSEG “wheel,” in which PSEG takes 1,000 MW from Con Ed at the New York border and delivers it to Con Ed load in New York City. PJM told FERC in an answer filed Friday that Con Ed’s protest is a challenge to the distribution factor (DFAX) cost allocation method outlined in Schedule 12 of PJM’s Open Access Transmission Tariff and approved by FERC in Order 1000 proceedings. The dispute could turn on whether the commission agrees with PJM that the PSE&G upgrade has regional benefits, as PJM insists, or whether it primarily addresses a local reliability problem, as the protestors contend.
Under rules approved by FERC last year (142 FERC ¶ 61,214), PJM will allocate the cost of regional projects — defined as double 345kV and those 500kV and above — under a hybrid formula: Half of the cost is socialized based on load share and the other half based on identified beneficiaries. For reliability projects, the beneficiaries are identified based on post-upgrade load flow, as determined by a DFAX analysis. In approving the use of DFAX, the commission ordered PJM and its transmission owners to provide more detail regarding how the formula would be implemented. The filing said the “PSEG Northern NJ 345 kV Project” (project b2436) is intended to relieve overdutied breakers at Essex, Kearny, and NJ Meadowlands 230kV. The hybrid formula was applied to 15 of the 26 subprojects that comprise the PSE&G upgrade.
According to Con Ed’s calculations, almost $763 million of the project cost will be assigned based on DFAX calculations, with the remaining $418 million allocated based on load ratio shares.
The Con Ed-PSEG wheel began in the 1970s as a grandfathered service by PSE&G, and was converted in 2012 to the PJM Tariff. Con Edison says RTEP charges currently represent about $9 million of the wheel’s $40 million annual cost.
After Con Ed filed its challenge, Linden VFT LLC, a subsidiary of General Electric Capital Corp., filed a protest of its own.

In addition, Linden complains, the allocation makes no adjustment for the benefits received by customers who would have been assessed the costs of the previously approved RTEP projects that were cancelled as a result of the PSE&G upgrade. McDonald, a natural gas industry expert with decades of experience working with natural gas infrastructure, said regulator vaults are important because they reduce the pressure of the natural gas coming in to any given area so that it can be distributed to consumers safely. When regulator vaults are flooded, McDonald said, the regulator mechanism’s ability to reduce gas pressure can be significantly impaired. In addition, prolonged exposure to water can contribute to accelerated corrosion of the regulators, causing gas leaks that could trigger an explosion or fire. According to documents obtained by, the utilities are well aware of the danger posed by flooded regulator vaults.
ConEd is not the only utility to acknowledge the problems caused to regulator vaults by extended exposure to water. In New Jersey, New Jersey Natural Gas is currently involved in litigation with the town of Red Banks, New Jersey over the placement of regulator vaults.
NJNG wants to relocate the regulator vaults above ground because underground vaults pose a threat to public safety.
NJNG is attempting to move the underground service regulators to above-ground locations for one reason: to avoid the significant and imminent danger of a potentially deadly gas leak in a densely populated area.
The video you have on this article shows an underground electrical transformer vault arcing.
Gas flowing from higher to lower pressure is the core principle of the natural gas delivery system as everyone knows. Got Information?If you've got information or documents about natural gas leaks or explosions, we'd love to hear from you. Lorem ipsum dolor sit amet, consectetur adipisicing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua.

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Its protest was joined by the New York Public Service Commission and New York City (ER14-972). 10, PJM submitted to FERC amendments to Schedule 12 of its Tariff reflecting cost responsibility for 111 baseline RTEP upgrades approved by the Board of Managers in December. Of the remaining 11 subprojects, one is fully allocated to PSE&G and the remaining 10 are allocated based on DFAX, according to Con Ed. The $600 million allocation for the short circuit fix would quadruple the cost of the wheel to $160 million annually, Con Ed says. Con Ed said the cost distribution for the project — which contends the upgrade would be needed without its wheel — is “grossly disproportionate to the relative loads” of the two companies.
Linden VFT, which owns a 315 MW merchant transmission facility which interconnects both PJM and NYISO, said it learned from the Con Ed challenge that it would be billed an additional $2.5 million in RTEP charges annually, more than doubling its current RTEP tab. Con Edison’s Gas Engineering and R&D are working on a design for a vent line protector for households in flood prone areas. The town, the utility maintains, wants to keep the regulator vaults underground because it’s more aesthetically pleasing to have the structures out of sight  instead of cluttering up the streetscape. Con Edison continues to offer several energy efficiency programs for residential customers. If gas is coming into a home or a business at a much higher pressure than it’s supposed to, it can cause a fire or even an explosion.

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