The Edison Electric Institute recently issued a White Paper discussing the need for utilities to receive rates of return on investments in transmission facilities sufficient to enable them to attract capital for expansion of the nation’s electric transmission grid. FERC has encouraged utilities to create a robust interstate transmission network capable of protecting the reliability of transmission service while promoting growth of competitive multi-state wholesale electricity markets. Such a network would also facilitate greater reliance on energy from wind and solar facilities.
As discussed in the White Paper, utilities may be unable to attract the capital needed to finance construction of transmission facilities (and thereby expand the nation’s transmission grid) to meet growing needs at reasonable costs unless they are assured of the ability to realize adequate returns on their investments in these facilities. Nevertheless, FERC is being encouraged by some parties to reduce the rates of return on transmission investments.
To see the press release, please click here.