FERC seeking comments on improvements to electric transmission incentives policy
The Federal Energy Regulatory Commission (FERC) recently announced that it is seeking comments on potential improvements to its electric transmission incentives policy.
FERC said it wants to ensure “to ensure that it appropriately encourages the development of the infrastructure needed to ensure grid reliability and reduce congestion to reduce the cost of power for consumers.”
The notice of inquiry (NOI) examines whether FERC should continue to grant incentives based on a project’s risks and challenges or whether incentives should be based on the benefits that a project provides. The NOI also addresses consideration of incentives based on measurable criteria for economic efficiency and reliability benefits, providing incentives for improvements to existing transmission facilities, considering the costs and benefits of projects in awarding incentives and determining whether to review incentive applications on a case-specific or standardized basis.
“The WATT Coalition is more than pleased to see this Commission inquiry,” said Rob Gramlich, executive director of the WATT Coalition, a group of companies that is working to upgrade the U.S. electric transmission system. “We think it will be fruitful in finding ways to deploy advanced transmission technologies across the U.S. so that American consumers can benefit from the same boost in reliability and economic delivery that consumers in other countries have experienced.”
The WATT Coalition, the American Wind Energy Association (AWEA), the American Council on Renewable Energy (ACORE) and Americans for a Clean Energy Grid (ACEG) previously sent a letter to FERC requesting a proceeding to hold a technical conference on transmission incentives.
The FERC NOI also seeks comment on various return on equity (ROE) incentives, including how they interact with the base ROE and other transmission incentives. The NOI also seeks input about possible metrics for evaluating the effectiveness of incentives.
Initial comments on the NOI are due 90 days after publication in the Federal Register. Reply comments are due 30 days after that.
