Texas Transmission Costs: What’s Changing and Why - Cozzy Energy Solutions **Texas Utility Commission Seeks Input on Transmission Cost Recovery Proposals** The Public Utility Commission of Texas (PUCT) has initiated a review of transmission cost recovery methods within the Electric Reliability Council of Texas (ERCOT) region, seeking public comment on proposed changes. This evaluation, designated Project No. 58484, stems from Senate Bill 6 (SB 6), which

Texas Transmission Costs: What's Changing and Why #ERCOT #TexasEnergy #TransmissionCosts #ERCOT #RenewableEnergy #Ratemaking

Solar Project Funding in Jeopardy - Cozzy Energy Solutions Ameren Missouri has requested permission from the Federal Energy Regulatory Commission to potentially terminate funding agreements related to a 300-MW solar project due to uncertainty surrounding transmission costs. The request, filed Feb. 10, 2026, arises from concerns about U.S. Department of Energy funding for transmission projects connecting the Midcontinent Independent System Operator and the Southwest

Solar Project Funding in Jeopardy #MISO #RenewableEnergy #SolarProject #TransmissionCosts #FERC #EnergyPolicy

Shocking report reveals how wealthy companies are passing costs on to ordinary Americans: 'This is morally wrong' Wealthy companies are increasingly investing in data-center development amid an AI boom, yet everyday consumers, rather than the companies, are the ones footing the bill.

The #UnionofConcernedScientists examined #utilitycosts in states by transmission co. #PJM: Illinois, Maryland, New Jersey, Ohio, Pennsylvania, Virginia & West Virginia.

#UCS discovered that PJM passed on over $4.3 billion in #datacenter #transmissioncosts on to customers in 2024". #utilitybills

Texas Senate Bill 6 Aims to Boost Grid Reliability with New Connection Standards and Revenue Opportunities for Water and Sewer Utilities Texas Senate Bill 6 (SB 6), enacted in June 2025, introduces significant changes to how large energy consumers connect to and operate within the Texas power grid managed by ERCOT. The legislation aims to expedite grid connections, bolster grid reliability, re-evaluate transmission cost allocation, and create new avenues for revenue generation for water and sewer utilities. Key provisions of SB 6 address large load interconnection standards, requiring enhanced disclosure and potential financial contributions for grid upgrades. Facilities with on-site power generation, such as data centers, face a revised approval process. The existing method for allocating transmission costs, known as "4CP," is now subject to review and possible modification. Water and sewer companies in counties with fewer than 350,000 residents are now permitted to generate and sell surplus electricity. Additionally, ERCOT will competitively procure demand reductions from large energy users during anticipated emergencies, creating a new reliability service. The law has far-reaching implications. Data centers and industrial manufacturers will experience altered operational requirements and may incur increased costs, but also have opportunities for revenue generation through demand response programs. Electric utilities face new management responsibilities regarding interconnection and cost allocation. Water and sewer companies can potentially generate revenue through electricity sales, and grid planners will benefit from increased data transparency. Implementation of SB 6 will primarily occur through rulemaking processes led by the Public Utility Commission of Texas (PUCT). ERCOT will be responsible for developing the new reliability service, and the PUCT will evaluate the current transmission cost methodology. Public input during the PUCT rulemaking is encouraged.

Texas Senate Bill 6 Aims to Boost Grid Reliability with New Connection Standards and Revenue Opportunities for Water and Sewer Utilities #ERCOT #GridReliability #UtilityRegulation #ElectricityTrading #WaterUtilities #TransmissionCosts

Proposal Sparks Debate Over Transmission Costs and Data Centers for Maryland Electricity Consumers A Proposal Sparks Debate Over Transmission Costs and Data Centers A growing controversy is unfolding regarding the allocation of costs for new electricity transmission lines, primarily intended to support the expanding energy demands of data centers in Virginia. The proposal under consideration could shift a substantial portion of these costs onto Maryland electricity consumers, potentially adding $800 million or more to their electricity bills. Maryland’s Public Service Commission is raising concerns about the fairness of burdening its residents for infrastructure benefiting a neighboring state. PJM Interconnection, the regional transmission organization managing electricity for 13 states, defends the project, emphasizing its importance for overall grid reliability and regional energy security. PJM clarifies that transmission development costs are allocated based on their established tariff and apply to transmission zones that frequently span multiple states. They point out that Maryland has been importing a significant portion of its electricity (historically 40%) and has experienced a net loss of generating capacity since 2018. The organization also recognizes the national economic priority of data center growth. While acknowledging the debate, PJM stresses that they do not control retail electricity rates, which are set by transmission companies who determine how costs are passed on to consumers. Readers are directed to a detailed fact sheet on the PJM website for further information ([https://urldefense.com/v3/__https://www.pjm.com/-/media/DotCom/about-pjm/newsroom/fact-sheets/md-piedmont-reliability-project-fact-sheet.pdf__;!!FJkDyvWmnr4!f7TWKEfTuHZI9tPdHiai--vkUDraML8H7p2_HplFrMXGhA8Rg8a6AKtQFTekmQruUR-Lh2k2OD004k7R17uREk8elSGd$](https://urldefense.com/v3/__https://www.pjm.com/-/media/DotCom/about-pjm/newsroom/fact-sheets/md-piedmont-reliability-project-fact-sheet.pdf__;!!FJkDyvWmnr4!f7TWKEfTuHZI9tPdHiai--vkUDraML8H7p2_HplFrMXGhA8Rg8a6AKtQFTekmQruUR-Lh2k2OD004k7R17uREk8elSGd$)). The situation highlights the growing interdependence of states for energy resources and sparks a critical discussion about fair cost allocation for regional infrastructure. The rapid expansion of data centers is placing considerable strain on existing electricity grids. Maryland’s Public Service Commission is advocating for greater transparency in how these costs are determined and passed on, recognizing consumers have limited direct control over these decisions. Key questions arise regarding the fairness of shifting costs to Marylanders for the benefit of Virginia data centers and the transparency of cost calculation methods. Concerns also exist about the potential impact on electricity bills and the exploration of alternative solutions that could mitigate the financial burden on Maryland consumers. A long-term strategy for managing energy demand and grid capacity within the region is also needed. It’s important to acknowledge that this is a complex issue with numerous technical and financial nuances and that PJM’s perspective represents one viewpoint among several. The “allocation” of costs is a carefully worded term; it does not negate the connection between the costs and the data centers in Virginia. These issues are subject to ongoing regulatory processes and are not yet resolved.

Proposal Sparks Debate Over Transmission Costs and Data Centers for Maryland Electricity Consumers #PJM #Maryland #DataCenters #TransmissionCosts #ElectricityBills #RegulatoryDebate

“Kentucky’s KPSO and AG File Complaint Against American Electric Power Over Unfair Transmission Costs” - Cozzy Energy Solutions The Kentucky Public Service Commission (KPSO) and the state's Attorney General have joined forces to file a complaint with the Federal Energy Regulatory Commission (FERC), alleging that American Electric Power (AEP) is unfairly charging its customers for transmission costs without providing any direct benefit or value to them. This move by KPSO and the Attorney General comes as FERC's jurisdiction over such issues was established in 2005, part of a broader energy reform effort initiated by Congress. However, despite this authority, the commission has yet to take action on similar complaints from other states. AEP is continuing to operate under its current transmission pricing structure despite these allegations. The state regulators argue that AEP's practice violates FERC's authority over interstate transmission rates and amounts as established in 2005. In response to these allegations, AEP asserts that its transmission pricing structure aligns with federal law and is necessary for financing the development of new transmission infrastructure. The recent filing by KPSO and the Attorney General raises questions about how long it will take for FERC to address this issue or what decision they may ultimately reach. Given the limited number of commissioners who have to make these decisions, factors like politics and regulatory priorities could influence their actions. This case has implications extending beyond Kentucky as well, with KPSO and the Attorney General having filed complaints against other utilities in the state, including Duke Energy. The latter has been involved in similar transmission pricing disputes with regulators in other states.

"Kentucky's KPSO and AG File Complaint Against American Electric Power Over Unfair Transmission Costs" #PJM #ElectricPower #TransmissionCosts #FERC #RegulatoryComplaint #KentuckyUtilities

PJM 2024 State of the Market Report: A Comprehensive Analysis - Cozzy Energy Solutions PJM 2024 State of the Market Report: A Comprehensive Analysis The 2024 State of the Market Report for PJM, a regional transmission organization in the Mid-Atlantic United States, provides a detailed evaluation of the operation of PJM's wholesale electricity markets. The report assesses the effectiveness of market rules, tariff provisions, and compliance with these regulations. Key findings from the report reveal that energy prices in PJM were largely determined by units operating at or near their short-run marginal costs, indicating generally competitive behavior in the market. However, transmission costs have been a persistent issue, with the cost per MWh of wholesale power exceeding capacity costs since 2019. This has resulted in higher energy prices for consumers, with customers paying an additional $685.8 million due to binding transmission constraints and locational price differences. The PJM FTR market design has also been criticized for its flaws, resulting in customers receiving significantly less congestion revenue than they should have since the 2011/2012 planning period. The report estimates that customers have been shortchanged by $4.6 billion over this period. To address these issues and promote a more competitive and efficient energy market, the report identifies several areas for improvement. Firstly, the FTR market design needs to be enhanced to ensure that customers receive the rights to 100% of the congestion they pay. Secondly, efforts should be made to reduce transmission costs by encouraging investment in generation and grid infrastructure. Finally, market rules and tariff provisions need to be updated to reflect changing market conditions and promote competitive behavior. The report is a valuable resource for policymakers, industry stakeholders, and the broader public interested in energy market operations. Its comprehensive analysis provides insights into the complexities of PJM's wholesale markets and highlights areas for improvement to promote a more efficient and competitive energy market.

PJM 2024 State of the Market Report: A Comprehensive Analysis #PJM #EnergyMarket #PJM2024 #TransmissionCosts #ElectricityPrices #RegulatoryAnalysis