ANOTHER TRANSMISSION SOLUTION

U.S. Senate Introduces Controversial Transmission Cost-Allocation Legislation
Michael Bates, 21 February 2011 (Solar Industry)

"A group of U.S. senators has introduced legislation that adds a new voice to the ongoing dialogue among the Federal Energy Regulatory Commission (FERC) and other stakeholders related to transmission cost allocation.

"The Electric Transmission Customer Protection Act is intended to prevent FERC from applying cost-recovery mechanisms for interstate transmission projects beyond where the upgrades will have an immediate, direct benefit.

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"This position is at odds with a current proposed rule in FERC's docket that…that spreads infrastructure costs regionally among a wide range of consumers. The senators claim the commission's rule would…[impose costs] outside of the area immediately serviced by the new transmission…"

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"The act - put forth by [Sen. Ron Wyden, D-Ore.] and U.S. Sens. Bob Corker, R-Tenn.; Lisa Murkowski, R-Alaska; Richard Burr, R-N.C.; and Lindsey Graham, R-S.C. – would…[protect consumers from paying for projects] that serve no benefit for their state or region…

"The proposed measure drew swift reaction from the industry…Jim Hoecker, counsel to industry trade group WIRES and a former FERC chairman…[said the legislation] is unnecessary…[and will] thwart needed investment in the high-voltage grid…curtail the nation's ability to develop domestic energy…[and limit] FERC's [long-standing] authority to appropriately allocate transmission costs…"