Industries Transmission Investment
December 30, 2011 - Otter Tail Power Company, Docket No. ER12-342-000
The Commission grants incentives to Otter Tail Power Company for two transmission projects, the Big Stone South – Brookings Project and the Ellendale – Big Stone South Project. Specifically, the order grants (1) recovery of 100 percent of prudently incurred CWIP in rate base; and (2) recovery of 100 percent of prudently incurred costs of transmission facilities that are cancelled or abandoned for reasons beyond the control of Otter Tail.
December 30, 2011 - MidAmerican Energy Company, Docket No. ER12-242-000
The Commission grants incentives to MidAmerican and the Midwest ISO for four new transmission projects, the Sheldon-Webster Project, the Hampton-Blackhawk Project, the Oak Grove-Galesburg Project, and the Ottumwa-Adair Project. The order grants approval to include 100 percent of prudently incurred CWIP in its rate base and to recover 100 percent of prudently incurred costs of transmission facilities that are cancelled or abandoned for reasons beyond MidAmerican’s control.
December 30, 2011 - PJM Interconnection, LLC and Public Service Eletric and Gas Company, Docket No. ER12-296-000
The Commission granted PJM’s request on behalf of PSEG for incentive rate treatment for the Northeast Grid Reliability Project (NGR Project). The order grants incentives including a 100 basis point ROE incentive adder, recovery of 100 percent of CWIP in rate base, and authorization to recover 100 percent of all prudently-incurred development and construction costs if the NGR Project is canceled, in whole or in part, for reasons beyond PSE&G’s control.
October 14, 2011 - RITELine Illinois, LLC and RITELine Indiana, LLC, Docket Nos. ER11-4069-000 and ER11-4070-000
The Commission granted in part RITELine Illinois, LLC’s and RITELine Indiana, LLC’s application for acceptance of a formula rate and approval of rate incentives for the Reliability Interregional Transmission Extension Project.
June 16, 2011 - Central Maine Power Company and Maine Public Service Company, EL08-77-002
The Commission denied rehearing of a November 2009 order granting incentives for the Maine Power Connection project subject to conditions.
June 16, 2011 - Northeast Transmission Development, LLC, Docket No. EL11-33-000
The Commission granted in part Northeast Transmission Development, LLC’s request for transmission rate incentives in connection with two proposed transmission projects, the Liberty East Project and the Kanawha Project. The order conditionally grants the request for transmission rate incentives including: (i) deferred recovery of pre-commercial costs through a regulatory asset, (ii) recovery of abandonment costs for each project, provided that the abandonment is a result of factors beyond Northeast Transmission’s control, (iii) a 50 basis point ROE adder for RTO participation, and (iv) a 30-year depreciable life for each project.
June 13, 2011 - PJM Interconnection ,LLC and Public Service Electric and Gas Company, Docket Nos. ER11-3352-000 and ER11-1985-001
The Commission approved rate incentives for PJM Interconnection, L.L.C. (PJM), on behalf of Public Service Electric and Gas Company’s (PSE&G) to implement requested transmission rate incentives for five separate projects: (1) the Burlington – Camden Project; (2) the West Orange Project; and (3) the Mickleton-Camden-Gloucester Project. The order grants inclusion of 100 percent of CWIP in rate base and 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. The order denies incentives for the the Middlesex Switch Rack Project and the Bayonne – Marion Project.
May 20, 2011 - Desert Southwest Power, LLC, Docket No. EL10-54-000
The Commission approved rate incentives for Desert Southwest Power’s proposed 118-mile, 500-kV transmission line to move resources such as wind generation to Southern California. The order grants combined ROE adders of 150 basis points, 100 percent CWIP in rate base, abandoned plant cost recovery and a hypothetical capital structure of 50 percent equity and 50 percent debt.
May 19, 2011 - Central Maine Power Company, Docket No. EL08-74-001
The Commission denied rehearing of an October 2008 order that authorized transmission rate incentives for Central Maine Power Co.’s Maine Power Reliability Program Project that was subject to ISO New England approving the project in its regional system plan.
May 19, 2011 - New England Conference of Public Utilities Commissioners, Inc. (NECPUC), Docket No. EL08-69-001
The Commission denied rehearing of a September 2008 order that rejected a complaint seeking to prevent New England transmission owners from applying ROE adders to project costs in excess of those estimated at the time the incentive was approved.
May 19, 2011 - Green Power Express LP, Docket Nos. ER09-681-000 and ER09-681-001
The Commission denied rehearing an April 2009 order granting incentives for Green Power Express’ proposal to build approximately 3,000 miles of 765 kV transmission lines in the Midwest to facilitate the interconnection of nearly 12,000 MW of new wind generation.
May 19, 2011 - Ameren Services Company, Docket No. EL10-80-000
The Commission granted incentives for Ameren Services’ proposed 331-mile Illinois Rivers and 185-mile Big Muddy River projects, subject to the Midwest Independent Transmission System Operator approving the project in its regional system plan, but denied incentives for the Spoon River and Wabash River proposals.
May 19, 2011 - Atlantic Grid Operations A LLC, Atlantic Grid Operations B LLC, Atlantic Grid Operations C LLC, Atlantic Grid Operations D LLC, and Atlantic Grid Operations E LLC, Docket No. EL11-13-000
The Commission conditioned its approval on the Atlantic Wind Connection project being included in PJM Interconnection’s regional transmission expansion plan, and found the project was not entitled to a rebuttable presumption that it qualified for incentives and did not provide the necessary support for a determination that it would ensure reliability or reduce the price of delivered power by reducing congestion. FERC also reduced the up-front incentive ROE to 12.59 percent, which includes 250 basis points in adders.
Among other incentives, Atlantic Wind Connection had sought a 13.58 percent return on equity that included incentive adders totaling 300 basis points, inclusion of 100 percent of construction work progress (CWIP) in rate base, recovery of 100 percent of prudently incurred costs if the plant is abandoned for reasons outside the companies’ control and a hypothetical capital structure based on 60 percent equity and 40 percent debt.
May 19, 2011 - Central Transmission, LLC, Docket No. EL11-21-000
The Commission granted and denied, in part, incentives for Central Transmission’s 345-kV Valley Project in Illinois, contingent on PJM including it as an economic enhancement in its regional system plan.
| Jeffery Hitchings