How FERC Is Fueling New Merchant Transmission Projects
February 27, 2013, 12:45 PM EST
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. 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...