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FERC Receives Mixed Responses Over Proposed Change in Merchant Transmission Policy

The Federal Energy Regulatory Commission (FERC) has received mixed responses over its proposed change in policy regarding merchant transmission project capacity allocation.  The proposed policy would allow merchant transmission project developers to bila
September 26, 2012

The Federal Energy Regulatory Commission (FERC) has received mixed responses over its proposed change in policy regarding merchant transmission project capacity allocation.  The proposed policy would allow merchant transmission project developers to bilaterally negotiate market-based, rather than cost-based, rates for up to 100 percent of their projects' capacity.  If implemented, this proposal would eliminate the open season process, which requires the merchant project owners to offer project capacity at the same price to every customer.  While several power companies were supportive of the proposal, the National Rural Electric Cooperative Association, which represents more than 900 not-for-profit rural electric utilities, filed an objection with FERC, expressing concern over the bias that could result from eliminating the open season requirement.  Read more here.

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