Public Citizen Protests PJM's Proposed Amendments to Schedule 12, Citing Imprudence and Falsification of Charges

Strategic Insights -

The Federal Energy Regulatory Commission (FERC) has been presented with a protest from Public Citizen, Inc. regarding PJM's proposed amendments to Schedule 12 of its Open Access Transmission Tariff. The protest, filed on June 27, 2025, centers around the proposed cost allocations for Public Service Electric and Gas Company's (PSEG) transmission projects, which Public Citizen claims are unjust and unreasonable. The company's formula rate annual update process has been identified as a key area of concern, with Public Citizen arguing that the Commission should waive procedural requirements to address the prudence of PSEG's cost recovery for the Roseland-to-Pleasant Valley transmission project.

Key Takeaways:

  • Public Citizen protested PJM's proposed amendments to Schedule 12, citing imprudence and falsification of charges in PSEG's transmission project cost allocations.
  • The protest focuses on proposed cost allocations for PSEG's Roseland-to-Pleasant Valley transmission project, which the company allegedly misrepresented to PJM, including a claim of 67 transmission towers in need of extensive reconstruction, when only 8 towers actually met the criteria.
  • The FERC initially found the protest to be "beyond the scope" of the PJM proceeding but directed that challenges to the recovery of costs for the Roseland-to-Pleasant Valley transmission project be raised through PSEG's formula rate annual update process.
  • Public Citizen is seeking to have the Commission waive procedural requirements, citing new information from a December 5 FERC enforcement action that reveals clear wrongdoing by PSEG, including a civil penalty of $6.6 million.
  • The enforcement order highlights PSEG's falsification of charges, including withholding incriminating pages from a presentation to PJM, resulting in the approval of a $546 million project without adequate due diligence.
  • Public Citizen argues that the Commission must set the matter for a hearing to ensure that families are not burdened with PSEG's falsified charges.

Statistics:

  • $6.6 million: the civil penalty imposed on PSEG by FERC as a result of its wrongdoing.
  • $546 million: the cost of the Roseland-to-Pleasant Valley transmission line replacement project approved by PJM without adequate due diligence.
  • 67: the number of transmission towers that PSEG claimed required "foundations requiring extensive reconstruction", when only 8 towers actually met the criteria.
  • 8: the actual number of transmission towers that required extensive reconstruction.
  • June 27, 2025: the date Public Citizen filed the protest with FERC.
  • December 5, 2024: the date of the FERC enforcement action that revealed PSEG's wrongdoing.

Sources:

  • 1 https://elibrary.ferc.gov/eLibrary/filelist?accession_number=20250110-5172
  • 2 189 FERC P 61,175, Docket No. IN21-5, https://elibrary.ferc.gov/eLibrary/filelist?accession_number=20241205-3039
  • 3 February 18, 2025 Order on Tariff Revisions, 190 FERC P 61,094, Docket No. ER25-775, at P 43, https://elibrary.ferc.gov/eLibrary/filelist?accession_number=20250218-3060
  • 4 BP Pipelines, 153 FERC P 61,233 at P 13 https://elibrary.ferc.gov/eLibrary/filelist?accession_number=20151120-3065
  • Enforcement order, https://elibrary.ferc.gov/eLibrary/filelist?accession_number=20241205-3039