How FERC Aims To Change Transmission Rate Setting

Law360 (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.

For months, FERC watchers wondered how FERC would meet its responsibilities to set just and reasonable rates under Federal Power Act Section 206, especially where those rates applied to...

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