The Federal Energy Regulatory Commission has issued an order clarifying that utilities must reapply for transmission rate incentives when their projects are reconfigured in a significant way. Explaining that incentives granted under Order 679 are project specific, FERC ruled that Public Service Electric and Gas Company lost its right to collect rate incentives for its originally proposed $1.1 billion Branchburg Project when PJM Interconnection, L.L.C. decided to reconfigure it into a smaller—though still substantial--$700 million dollar transmission expansion. Finding that the originally proposed project "no longer exists," FERC left the door open for PSEG to attempt to reclaim the 125 basis point return on equity adder that it had originally received, as well as the right to recover "construction work in progress" expenses while the new project is being built. In the meantime, FERC said that PSEG will be eligible to seek recovery of prudently incurred abandoned plant expenses if the new project is cancelled through no fault of its own, although recovering abandoned plant will itself require a new rate filing in any event.