Planning for the Future

PJM plans ahead, so electricity can be delivered reliably and affordably to more than 67 million people across our 13-state region and Washington, D.C. Think of PJM as the air traffic controller of the high-voltage grid: We study conditions, spot issues early and coordinate solutions with the companies that own and operate the equipment.

How Planning Works

PJM’s planning looks at both the near term and the long term:

• Annual planning (15 years ahead): Each year, we assess the grid and identify reliability and market-efficiency needs.
• Long-term planning (20+ years): Every few years, we refresh future planning scenarios to reflect big shifts in technology, demand (like data centers, manufacturing plants, electrification) and the resource mix.

Recommendations are discussed in public at the Transmission Expansion Advisory Committee (TEAC) and then considered by PJM’s Board of Managers.

See also: Regional Transmission Expansion Planning (RTEP), which explains how we identify needs and coordinate solutions

What “Transmission” Means (and How It Differs From Distribution)

Transmission moves high-voltage electricity long distances at the wholesale level. Substations step down the voltage so local utilities can deliver it to homes and businesses over lower-voltage distribution lines. PJM’s oversight focuses on the high-voltage transmission system.

Learn more: How Transmission Works (PDF)

What We Study

We look for early signs of stress on the grid and opportunities to move power more efficiently, including:

• Lines or substation equipment nearing safe capacity
• The impact of new generation connecting to the system
• Fast-growing electricity needs in specific locations
• Resilience needs (for example, extreme weather)

When we evaluate solutions proposed by transmission developers, we use six clear criteria: Performance, Cost, Scalability, Impact, Risks and Efficiencies (avoiding redundant investment).

From Study to Solution

If a need is identified, qualified developers submit proposals during competitive “windows.” PJM coordinates review with stakeholders (at TEAC) and then makes a recommendation to the PJM Board. If approved, PJM files proposed associated cost-allocation assignments with FERC. Transmission-owning utilities pursue siting and permitting with state and local authorities and build the project.

Reminder: PJM plans and coordinates; transmission owners build, own and operate the facilities.

Connecting New Power Plants

PJM administers the process to interconnect new or upgraded generators to the grid. We study each proposal to understand grid impacts and necessary upgrades; the project developer pays for the studies. Interconnection results feed into regional planning, so generator-driven upgrades and long-term needs stay aligned.

Learn more: Generation Interconnection (PDF)

Working With Neighbors

Because electricity doesn’t stop at state lines, PJM coordinates planning with neighboring regions to ensure that projects near our borders provide benefits across the seam and don’t create issues next door. For example, PJM works with grid operators like MISO and NYISO to evaluate cross-border transmission projects so that an upgrade in one region improves reliability for both and avoids shifting problems onto neighbors.