Commissioner Cheryl A. LaFleur
July 19, 2018
Docket No. EL15-67-003
Concurrence on Linden VFT, LLC v. PJM Interconnection, L.L.C.
“In today’s order, the Commission establishes procedures to provide the parties an opportunity to settle a long-pending dispute regarding the appropriate cost allocation for certain transmission facilities located in the PJM Transmission, L.L.C. (PJM) footprint. I dissented on an earlier order in this proceeding, arguing that the complainants had met their burden under section 206 of the Federal Power Act to establish that the use of the solution-based distribution factor (DFAX) cost allocation method to allocate the costs of the Bergen-Linden Corridor Project is unjust and unreasonable.1
As today’s order notes, however, there have been significant developments since the April 2016 Order that have affected the dispute still pending before the Commission, including, among others, the termination of Consolidated Edison Company of New York, Inc. transmission service agreement with PJM and the conversion from firm to non-firm of the transmission rights held by both Hudson Transmission Partners, LLC and Linden VFT, LLC. While a number of these changes are a direct consequence of the April 2016 Order, I agree that establishing settlement procedures to resolve any remaining disputes is an appropriate next step at this time.2
I strongly encourage the parties to reach a negotiated resolution and stand ready to act on any pending rehearing requests should they be unsuccessful.
“Accordingly, I respectfully concur.”
- 11 Linden VFT. LLC v. PJM Interconnection, L.L.C., 155 FERC ¶ 61,089 (2016) (April 2016 Order) (LaFleur, Comm’r, dissenting).
- 22 I note that, in a separate order issued today, the Commission grants rehearing of its decision in Delaware Public Service Commission v. PJM Interconnection, L.L.C., 155 FERC ¶ 61,090 (2016), concerning the appropriate cost allocation methodology for stability projects in PJM, such as the Artificial Island Project. While I issued a single dissent on the Commission’s earlier order in that proceeding and the April 2016 Order, I believe the records and subsequent developments in each case support the different approaches adopted by the Commission today.