NEMA Welcomes FERC Issuance of Performance-based Transmission Rule

08/22/2006


The National Electrical Manufacturers Assn. announced that it welcomes a Federal Energy Regulatory Commission rule implementing incentive-based transmission rate provisions in the Energy Policy Act of 2005. Issued in late July, the rule would allow increased rates of return for projects intended to increase transmission reliability or reduce congestion costs.

According to NEMA President Evan Gaddis, the rule “will ultimately strengthen our electrical infrastructure, help the country keep up with growing demand for power and prevent disruptions in electrical service.”

The rule states that Congress clearly intended rate incentives for more transmission investment. The rule says that incentives for reliability, congestion reduction, or both will be allowed. The rule applies to projects under consideration as of the date of EPAct 2005 enactment, August 8, 2005.

It allows broad inclusion of such measures as construction work in progress and reimbursement for projects that had to be abandoned for reasons outside transmission company control.

A rebuttable presumption that incentive-based rates are justified will be made for the three projects below. Opponents of incentive-based rates in these cases would have to make a strong showing that they were not justified:

A transmission project in an open planning project intended to address reliability and/or congestion; a project that has received state construction approval; or a proposed project in a National Interest Electric Transmission Corridor.

FERC backed up the generic language with specific actions in separate proceedings for American Electric Power- and Allegheny Power Systems-proposed lines in the PJM (Pennsylvania, New Jersey, Maryland) region, allowing increased rates of return.





Consulting-Specifying Engineer's Product of the Year (POY) contest is the premier award for new products in the HVAC, fire, electrical, and...
Consulting-Specifying Engineer magazine is dedicated to encouraging and recognizing the most talented young individuals...
The MEP Giants program lists the top mechanical, electrical, plumbing, and fire protection engineering firms in the United States.
How to use IPD; 2017 Commissioning Giants; CFDs and harmonic mitigation; Eight steps to determine plumbing system requirements
2017 MEP Giants; Mergers and acquisitions report; ASHRAE 62.1; LEED v4 updates and tips; Understanding overcurrent protection
Integrating electrical and HVAC for energy efficiency; Mixed-use buildings; ASHRAE 90.4; Wireless fire alarms assessment and challenges
Power system design for high-performance buildings; mitigating arc flash hazards
Transformers; Electrical system design; Selecting and sizing transformers; Grounded and ungrounded system design, Paralleling generator systems
Commissioning electrical systems; Designing emergency and standby generator systems; VFDs in high-performance buildings
As brand protection manager for Eaton’s Electrical Sector, Tom Grace oversees counterfeit awareness...
Amara Rozgus is chief editor and content manager of Consulting-Specifier Engineer magazine.
IEEE power industry experts bring their combined experience in the electrical power industry...
Michael Heinsdorf, P.E., LEED AP, CDT is an Engineering Specification Writer at ARCOM MasterSpec.
Automation Engineer; Wood Group
System Integrator; Cross Integrated Systems Group
Fire & Life Safety Engineer; Technip USA Inc.
This course focuses on climate analysis, appropriateness of cooling system selection, and combining cooling systems.
This course will help identify and reveal electrical hazards and identify the solutions to implementing and maintaining a safe work environment.
This course explains how maintaining power and communication systems through emergency power-generation systems is critical.
click me