Media 
October-December 2003
| News Release: December 17, 2003 | 
View
Printable PDF Version |
| Docket Numbers: ER03-1141-000, et al. and EL03-222-000, et al. | |
COMMISSION APPROVES TRANSMISSION COST ALLOCATION PLAN FOR
NEW ENGLAND REGION
The Federal Energy Regulatory Commission today accepted a proposal
that allocates costs for transmission upgrades in the New England
region, a move that willhelp further the Commission’s goals
to secure adequate infrastructure for the nation’s electric
markets.
In taking today’s actions, the Commission said that the proposal
is a “clear, transparent and non-discriminatory” method
for allocating costs, consistent with the principles of open access
transmission service.
The proposed transmission cost allocation (TCA) amendments, submitted
by the New England Independent System Operator (ISO-NE) and the
New England Power Pool (NEPOOL), result in a combination of participant
funding and regional cost support.When beneficiaries can be identified,
participant funding will apply. General
enhancement of the transmission grid would be supported by the entire
network of transmission customers.
The new guidelines will help provide greater certainty to investors
in building needed infrastructure to ensure reliability in the region.
The New England grid is highly integrated, the Commission noted,
and transmission upgrades often provide diffuse network benefits
to the entire grid.
The Commission has long advocated the use of regional approaches
and has encouraged flexibility in finding solutions for regional
markets. In its White Paper on Wholesale Market Platform issued
earlier this year (Docket No. RM01-12), the Commission said that
it would look to the regional transmission organization (RTO) or
ISO and regional state committees to determine the appropriate regional
approach for allocating the costs of new transmission, noting that
there may be regional differences over the level of participant
funding.
The Commission noted that there was widespread consensus among the
market participants for the proposal. The cost of facilities that
provide only local benefits, merchant transmission projects, and
generator interconnection costs will be recovered through participant
funding. The proposal rolls in the costs of upgrades for reliability
and upgrades that provide economic benefits to the region as a whole
when there is no participant agreement.
R-03-49 (30)
|
View
Printable PDF Version |
