At the October 16, 2008 FERC meeting, FERC announced its support for rate incentives for transmission projects in New England and in the West.

  • FERC's October 20, 2008, order approved a 1.25% return on equity adder for Central Maine Power Company's $1.4 billion Maine Power Reliability Program Project that is slated to increase reliability and capacity to export power to southern New England. Central Maine's proposal to recover 100% of construction-work-in-progress (CWIP) in its rate base was also approved conditioned on Central Maine filing for CWIP in a future filing. Further, FERC approved the utility's request for recovery of 100% of prudently incurred costs associated with abandonment, provided that the abandonment results from factors beyond the utility's control.

Click here for the Order (PDF)

  • On October 21, 2008, FERC approved incentive rates for what may be one of the most ambitious transmission, if not infrastructure, projects in the western United States in the past 20 years. PacifiCorp's $6 billion Energy Gateway Transmission Expansion Project received a 2% adder to the base return on equity. FERC also allowed for a 100% recovery of prudently incurred abandonment costs even though abandonment may be caused by factors outside PacifiCorp's control. The project is slated to be operative between 2010 and 2014, involves eight segments covering portions of Nevada, Idaho, Oregon, Utah, Washington and Wyoming and will deliver up to 3,000 MW of capacity from location-constrained renewable resources in Wyoming to distant load centers. FERC, however, noted that PacifiCorp failed to provide sufficient evidence to meet the statutory requirements for incentives for the segment of the project that runs from Walla Walla, Washington to McNary, Oregon, and extending to Umatilla, Oregon. PacifiCorp will not be barred from making a new filing for rate incentives for this segment of the line.

Click here for the Order (PDF)

Follow these links for an additional report on recent actions taken by the Federal Energy Regulatory Commission: