US FERC should be slow to award transmission incentive rates: coalition
Washington (Platts)–5Mar2012/706 pm EST/006 GMT
The US Federal Regulatory Commission should avoid awarding to transmission project developers rate of return on equity adders that boost investor profits at the expense of ratepayers, a broad coalition of state regulators, consumer advocates and environmentalists said Monday.
“The commission should not approve [ROE] incentives as a matter of course, particularly where other factors — such as cost recovery under formula rates — will mitigate the risk associated with a project,” the coalition…