Industries Transmission Investment
December 30, 2010 - PJM Interconnection, L.L.C, ER11-1985-000
The Commission denied Public Service Electric and Gas Company’s proposed tariff revisions to implement requested transmission rate incentives for four separate projects: (1) The Burlington – Camden Project; (2) The West Orange Project; (3) The Middlesex Switch Rack Project; and (4) the Bayonne – Marion Project (collectively, the Projects). Specifically, PSE&G requested: (1) inclusion of 100 percent of Construction Work in Progress in rate base; (2) authorization to recover 100 percent of all prudently-incurred development and construction costs if any of the Projects are abandoned or cancelled, in whole or in part, for reasons beyond its control; and (3) authority to assign these incentives to an affiliate, if construction and/or ownership of any of the Projects are assigned to such affiliate.
November 19, 2010 - Potomac-Appalachian Transmission Highline, L.L.C., Docket Nos. ER08-3386-000 and ER08-386-001
The Commission addressed rehearing of an order, which granted Potomac-Appalachian Transmission Highline, L.L.C.’s (PATH) incentive rate authorizations for a transmission project, which includes a 290-mile transmission line that begins at American Electric Power Co., Inc.’s Amos substation near St. Albans, West Virginia, with a terminus at the Doubs substation in Kemptown, Maryland. The Commission granted in part and denied in part the requests for rehearing of the order and set PATH’s return on equity for hearing and settlement judge proceedings. The Commission also accepted a proposed settlement agreement between PATH and several parties concerning formula rates.
November 18, 2010 - The Nevada Hydro Company, Inc., Docket No. ER06-278-007
The Commission denied rehearing of an order on transmission rate incentives for the Nevada Hydro Company, Inc.’s (Nevada Hydro) proposed TE/VS Interconnect and Lake Elsinore Advanced Pump Storage project. The Commission indicated that the reasonableness of a proxy group will be addressed in the course of Nevada Hydro’s subsequent Federal Power Act section 205 filing and finds that it is premature to decide how to proceed in processing that application as regards a possible upfront return on equity determination.
November 18, 2010 - Startrans IO, L.L.C, Docket No. ER08-413-002001
The Commission affirmed a prior conclusion that it was appropriate for Startrans IO, L.L.C. to use a regional proxy group in calculating its proposed return on equity (ROE) of 13.5 percent Specifically, the Commission clarified that it is not mandating that companies use a regional proxy group for purposes of calculating ROE in rate filings in this or other cases. The Commission also clarified that whether the Commission will make an up-front ROE determination will depend on the facts and circumstances of particular cases.
November 18, 2010 - Atlantic Path 15, LLC, Docket Nos. ER08-374-001 and EL08-38-001
The Commission granted in part and denied in part a request for rehearing of an order, which addressed Atlantic Path 15, LLC’s (Atlantic) proposed tariff change to decrease rates that it charges for transmission service over the transmission line upgrade and related substation upgrades to the Path 15 corridor financed by Atlantic. The Commission clarified that it is not mandating that companies use a regional proxy group for purposes of calculating return on equity (ROE) in rate filings in this or other cases. The Commission also clarified that whether it will make an up-front ROE determination will depend on the facts and circumstances of particular cases.
April 15, 2010 - Public Service Electric and Gas Company, Docket No. ER09-249-001
This order denies rehearing of a prior Commission order authorizing, transmission incentives, including a 150 basis-point return on equity adder, to PSE&G for construction of its portion of the Mid-Atlantic Power Pathway Project.
March 18, 2010 -
Baltimore Gas & Electric Company, Docket No. ER09-745-001
This order denies rehearing of the Commission's May 29, 2009 order authorizing transmission incentives pursuant to Order Nos. 679 and 679-A for BG&E portion of the 500 kV Mid-Atlantic Power Pathway (MAPP) Project. Specifically, the Commission authorized a return on equity (ROE) transmission rate adder of 150-basis points and an abandonment incentive.
January 21, 2010 -
Western Grid Development, LLC, Docket No. EL10-19-000
The Commission granted Western Grid's proposal to build and operate sodium sulfur batteries of 10 to 50 megawatts in size at specific sites along the California ISO grid. The rate incentives are for battery storage devices that are proposed to help improve the operation and reliability of the California ISO grid. The proposal states that the batteries are similar to substation equipment, such as large electricity capacitors, that are used in many wholesale transmission system facilities. The proposal adds that the batteries would provide transmission services to solve reliability problems using an advanced transmission technology that is cheaper and less harmful to the environment than traditional transmission solutions and can be incorporated into the grid using smart grid technologies.
January 5, 2010 -
Pioneer Transmission, LLC, Docket No. ER09-75-002
The Commission denied the requests for rehearing and granted clarification of an order authorizing transmission rate incentives for Pioneer Transmission's project which will connect PJM Interconnection, L.L.C., and Midwest Independent Transmission System Operator and will facilitate the interconnection of more than 4,000 megawatts of new wind generation.
January 5, 2010 -
Great River Energy, Docket Nos. ER10-147-000, ER10-147-001, and ER10-147-002
The Commission conditionally granted Great River Energy's request for approval of various transmission infrastructure investment incentives related to its investment in three transmission projects that are part of Phase I of the Great River Energy's CapX2020 Project. Specifically, the Commission approved recovery of: (1) 100 percent of prudently incurred Construction Work in Progress in rate base and (2) 100 percent of prudently incurred costs of transmission facilities that are cancelled or abandoned for reasons beyond Great River Energy's control and (3) a hypothetical capital structure of 20 percent equity and 80 percent debt.
| Jeffery Hitchings