Money on the way to improve electric-power grid

The upgrades, which include $230 million to connect generation projects capable of producing 2,500 megawatts of power for PJM's grid, are meant to address the expected peak demand for electricity in areas where generation sources are diminishing.

Power companies have announced plans to retire 2,700 megawatts of generating capacity on PJM's grid, which serves 51 million people in all or part of 13 states, including Maryland and D.C.

The upgrades complete PJM's 2005 plan to meet the reliability challenges it anticipates its grid will face through 2010. PJM approved $1.7 billion in upgrades under the plan, the most it has approved in any one-year plan.

PJM put together the 2005 plan as part of its Regional Transmission Expansion plan, which calls for it to continually review power supply and demand five years out. It will extend that time horizon to 15 years beginning with the plan it presents in June.

PJM has approved $2.8 billion in upgrades under its Regional Transmission Expansion Plan. Valley Forge, Pa.-based PJM is one of nine organizations that run systems controlling power transmission in North America.