• Transmission Cost Allocation - What Can We Get for Three-Tenths of a Cent?
  • July 15, 2010
  • Law Firm: Dickstein Shapiro LLP - Washington Office
  • Energy Practice Leader Larry Eisenstat discusses how FERC’s lack of a policy regarding network upgrade costs allocation impedes new transmission construction. He critiques current allocation methods and argues that FERC’s cost allocation policy must consider the technical basis for, and the policy objectives that would be furthered by, rolling in the costs of network expansion. The article notes that if transmission is to be built to any meaningful degree, FERC’s policy must include all the extrinsic and intrinsic benefits of new transmission.