The Hudson Transmission Project, a transmission line from northern New Jersey to New York City is scheduled to begin commercial operations on June 3 in both day ahead and real time markets according to the New York ISO. The line has been undergoing testing in the real time market since April 19 and in the day ahead market since May 24.
Earlier this week Genscape gave a live presentation to its clients on the Hudson Transmission Project and its impact on NYISO and PJM. If you are interested in listening to the on-demand webinar from our NYISO and PJM analysts please click here.
The Hudson Transmission Project is a 660 MW HVDC 345-kV transmission line that runs underground and underwater for 8 miles between New Jersey and New York City. The line connects to the PJM grid at the Bergen node and connects to the NYISO grid at the West 49th Street node in zone J. The line is physically capable of bidirectional flow, but for the time being, is only approved to flow from PJM to NY. 495 MW of the 660 MW of capacity is owned by the New York Power Authority (NYPA) and 100 MW of the capacity is owned by Consolidated Edison (Con Ed).
The line is expected to have an impact on pricing in NYISO and PJM in the summer months by moving power from PJM into the historically expensive and congested zone J in NYISO (New York City). Genscape PJM analysts expect the HTP to have a bullish impact on the PSEG zone price and increase the capacity factors of the Bergen gas units, even on lower demand days in New Jersey. On the New York side, Genscape analysts expect the line to have an overall bearish impact, but to have little impact on the zone J – zone G spread. Expensive prices in zone J are caused by internal congestion on the lower voltage system. Genscape analysts do not expect HTP to alleviate those constraints.
The addition of the Hudson Transmission Project will help to offset recent retirements in the area and is the largest single capacity addition in NYISO since the Bayonne Energy Center, which entered service in June 2012.
Click here to view notification from NYISO announcing the start of the line.
If you are interested in listening to an on-demand webinar from our NYISO and PJM analysts on "Planning for the Impact of the Hudson Transmission Project" please click here.