NEWS: Competition with data centers is raising transmission costs across PJM.

The numbers: Exelon reported costs for its planned reliability transmission projects are spiking. The cost of building a new 500 kV line nearly doubled from original estimates, for example, while the price tag for reconductoring two 230 kV circuits nearly quadrupled. 

The reason: The utility cited “competition for labor, materials, manufacturing capacity, and specialized resources from rapidly expanding data center construction projects.” On top of that, workforce shortages, wage inflation, and “constrained global manufacturing capacity” are adding expenses. 

Meanwhile: Dominion’s transmission expenses have also increased, due to permitting delays and material delivery delays.