Client Alert

Significant Changes in Regional Transmission Planning and Cost Allocation Proposed by the Federal Energy Regulatory Commission

August 16, 2010

William D. Degrandis and Alexandra Konieczny

On June 17, 2010 the Federal Energy Regulatory Commission (the Commission) issued a Notice of Proposed Rulemaking, Transmission Planning and Cost Allocation by Transmission Owning and Operating Public Utilities (the NOPR). Spurred by a desire to better address how electric transmission facilities can be better planned across the country on both an intra- and inter-regional basis, and to establish rules on how the costs of such facilities should be allocated, the Commission issued this NOPR. Simply put, the NOPR addresses (i) who should plan for new transmission and (ii) who should pay for the new transmission facilities. Every entity that owns or operates transmission facilities or that plans to own or operate transmission facilities could be affected and should consider protecting its interests by filing comments in response to the NOPR, or to at least monitor the proceeding to assess the potential impact on their systems. Comments are due September 29, 2010.

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