FERC May Up Merchant Transmission Developers' Leverage

Law360, New York (July 23, 2012, 8:37 PM EDT) -- The Federal Energy Regulatory Commission on Monday proposed letting merchant transmission project developers bilaterally negotiate contracts for up to 100 percent of their projects' capacity, which would essentially do away with the current process of auctioning off capacity rights.

The proposed policy change, which FERC submitted for publication in Tuesday's Federal Register, codifies a shift that has been taking place gradually over the last three years, as project sponsors pressured the agency for more leverage in allocating capacity.

“FERC realized it just makes sense to let...
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