The Pennsylvania Commonwealth Court upheld a decision by the state's Public Utility Commission denying transmission developer Transource Energy LLC's request to site and construct the Independence Energy Connection transmission project despite a finding by the PJM Interconnection LLC that the project would reduce congestion.

Judge Renee Cohn Jubelirer ruled May 5 that the PUC was within its power to reject the Pennsylvania segment of the multistate project (Case No. 689 C.D. 2021). The commission originally denied the application for the two-part project in May 2021, concluding that by 2019, the congestion concerns and costs that were stated in the application had changed so that the solution the Independence project was intended to provide was no longer needed.

"[W]e conclude that, in the present circumstances, Transource fails to carry the burden of persuasion by a preponderance of evidence to establish the need for the proposed siting applications," the PUC said in its May 2021 order.

The Commonwealth Court said in its ruling that the PUC's decision was in accordance with Pennsylvania law.

Transource Energy, a joint venture of American Electric Power Co. Inc. and Evergy Inc., did not immediately respond to a request for comment May 10.

The Independence project consists of two 230-kV lines, one between a new substation called Rice in Franklin County, Pa., and the Ringgold substation in Washington County, Md., and a second between a new substation called Furnace Run in York County, Pa., and the Conastone substation in Harford County, Md. They two lines were intended to ease congestion on a set of four 500-kV lines known as the AP South Reactive Interface.

Franklin County Commission Chairman Dave Keller said in a May 6 statement, "This project offered no benefits for Franklin County residents or Pennsylvanians generally. It was to be a path to export Pennsylvania's less expensive power to out-of-state consumers. The Commonwealth Court thoroughly reviewed the parties' position and held that the PUC was correct to deny the project application."

S&P Global Commodity Insights produces content for distribution on S&P Capital IQ Pro.