How FERC Is Fueling New Merchant Transmission Projects

Law360, New York (February 27, 2013, 12:45 PM EST) -- On Jan. 17, the Federal Energy Regulatory Commission issued a policy statement providing guidance on the allocation of capacity for new merchant transmission projects and new nonincumbent, cost-based, participant-funded transmission projects.[1] Here, we focus on the new rules that will apply to development of merchant transmission projects. In sum, these rules should help promote additional transmission development, which is a clear goal of FERC.

Unlike traditional utilities, which recover their costs through cost-of-service transmission rates recovered from customers under open-access transmission tariffs, investors in merchant transmission...
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