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Utilities tell Delaware task force PJM interconnection, upgrades and financing could slow SMR projects
Summary
Delmarva/Exelon and distribution cooperatives told the task force that PJM interconnection timelines, transmission upgrade needs and cost allocations are major feasibility constraints; presenters recommended early PJM engagement and said generator developers usually pay interconnection and upgrade costs.
Representatives from Delmarva Power/Exelon briefed the Delaware Nuclear Energy Feasibility Task Force on grid and interconnection constraints that affect the feasibility of siting small modular reactors in the state.
Joe Papp, senior manager of transmission regional planning for Exelon, described how PJM studies clusters of generation projects and how associated network upgrades are identified in a roughly 690‑day study cycle. “That gives you an idea of the different phases,” Papp said, explaining that any required transmission upgrades are driven primarily by total megawatt output and that costs are shared among projects in a study cluster.
Doug Dale, Exelon’s senior manager for interconnection contracts, stressed that proximity to 230 kV or 500 kV transmission improves feasibility but does not guarantee low‑cost interconnection because the existing network may still require upgrades. He said generator lead lines connecting a site to the nearest substation are typically the developer’s responsibility and that major substation work or new substations lengthen the timeline.
Delmarva’s Mario Giovannini added that while the company supports new generation in the region, some items are commercially sensitive and congestion details are not always public; he also said Exelon would engage in conversations about regulated utility ownership if Delaware changed statutes that currently limit utility generation ownership.
Members asked whether the recent PJM queue window (about 811 projects announced nationally) includes Delaware projects; Exelon replied that projects in Delaware are in the queue but are still in analysis. Staff also noted financing implications: banks commonly expect at least a signed generator interconnection agreement (GIA) or clear cost estimates to advance financing and that PJM publishes critical cost checkpoints during study windows.
The utilities recommended early PJM engagement to reduce development risk and flagged transmission upgrade costs and timelines as key drivers of project feasibility.
