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Expert Analysis

New FERC Guidance Signals More Developer Hurdles

Law360, New York (November 20, 2012, 2:18 PM EST) -- On Nov. 15, 2012, the Federal Energy Regulatory Commission issued a policy statement providing guidance on its evaluation of applications for electric transmission incentives under section 219 of the Federal Power Act (FPA) and its Order No. 679 (the "Incentive Rate Policy Statement"). As discussed below, the Incentive Rate Policy Statement reflects a continuation of the trend of scaling back the incentives being awarded to transmission developers, most notably, making it more difficult to obtain a substantial incentive return on equity (ROE), if any at all....

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