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Expert Analysis

How FERC Aims To Change Transmission Rate Setting

By James Hoecker and Sylvia Bartell (November 1, 2018, 2:32 PM EDT) -- The electric transmission rate setting process at FERC had become sclerotic. Hamstrung by pancaked complaints, changing financial market conditions, industry consolidation, perennial state skepticism about the impact of the commission's method of calculating rates of return on equity, or ROE, and a court remand, the commission appeared to abandon any hope that its promising Opinion No. 531 could both incentivize investment and satisfy recurrent ratepayer complaints about the cost of grid additions....

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