MISO & SPP Cost Allocation Rehearing Orders

Statement of Commissioner John R. Norris on MISO & SPP Cost Allocation Rehearing Orders

“As I have said on numerous occasions, disputes over cost allocation, in my view, have been the primary impediment to building needed new transmission infrastructure in many areas of the country. Today, we take action on rehearing in two important dockets concerning the allocation of costs for new transmission projects. Today’s orders affirm two decisions the Commission issued last year on cost allocation proposals submitted by the Midwest Independent Transmission System Operator, Inc. (MISO) and the Southwest Power Pool, Inc. (SPP). …

This is the monopoly process in action with consumers footing the bill. For example further down in the statement:

“…That principle requires that cost allocations reflect both the costs actually caused by customers who are assigned a share of them, and the benefits that customers who share in the costs receive from the facilities they support. …”

US Solar Market Feeling Effect of Supplier Shakeout

The US solar market continues to reel from the failure of US based panel manufacturers. Besides the headline company there are several others that have closed under the pressure from Chinese manufacturers. Between the lower cost labor and rare earth resources Chinese suppliers are driving the market.

When the economics of solar are looked at the efficiency is not there for the dollars expended. If it were not for government subsidies the market would not exist at all except for the companies or people who do not measure costs in money alone. But the marketplace can help increase the efficiency by continuing to chase out the inefficient products as better ones are made. The question is when will this reach a critical point. It appears to be many years away.

Comparative advantage will be one deciding factor on where the manufacturing will take place. At this time the US does not have any advantage over other countries.