Both federal and state governmental agencies are strongly emphasizing diversifying our energy generation portfolios by encouraging greater reliance on renewable energy resources. Because many viable renewable resource sites (especially solar, wind and hydro) are located far from the existing grid, interconnecting a renewable energy resource to the grid could trigger the need for tens of millions -- and in some cases, hundreds of millions -- of dollars in interconnection/transmission costs, which could be prohibitive for many projects. The Federal Energy Regulatory Commission (FERC) -- the federal agency that has jurisdiction over most disputes in this area -- is considering in different proceedings various objections to how these costs are allocated to such projects.
© 2011 Bloomberg Finance L.P. All rights reserved. Originally published by Bloomberg Finance L.P. in the Vol. 4, No. 2 edition of the Bloomberg Law Reports - Sustainable Energy. Reprinted with permission. Bloomberg Law Reports® is a registered trademark and service markof Bloomberg Finance L.P.