The Federal Energy Regulatory Commission (FERC) issued a Notice of Proposed Rule Making (NOPR) to revise its electric transmission incentive policy. Under the proposed rule, transmission projects would receive incentives based on economic and reliability benefits, shifting from the current incentive approach based on the risks and challenges faced by a project.
The proposed reforms include:
Increasing the incentive for joining and remaining a member of a Regional Transmission Organization, an Independent System Operator or other Commission-approved transmission organization.
Rewarding projects that demonstrate reliability benefits by providing quantitative analysis, where possible, as well as qualitative analysis.
Offering an incentive for transmission technologies that enhance reliability, efficiency and capacity as well as improve the operation of new or existing transmission facilities.
More information can be found in FERC’s Press Release. FERC invites stakeholders to comment on the NOPR - comments are due 90 days after publication in the Federal Register.