MSATs, Co-op File Cost-Sharing Proposal with FERC
The Midwest stand-alone transmission (MSAT) companies — including American Transmission Co. (Waukesha, Wisconsin, U.S.), ITCTransmission (Novi, Michigan, U.S.) and Michigan Electric Transmission Co., LLC (Novi), joined by Wolverine Electric Power Cooperative (Cadillac, Michigan) — have filed with the Federal Energy Regulatory Commission (FERC) a regional cost-allocation proposal for new transmission facilities at or above 345 kV.
Current policy using a “license-plate” rate design — allocating the costs of transmission facilities to customers in the pricing zones in which the transmission facilities are located — operates as a natural disincentive to invest in regional transmission. The MSATs and Wolverine believe increasing the “postage-stamp” cost allocation from 20% to 100% for new 345-kV lines and greater would spur interstate transmission investment.
The proposal seeks to have a new cost allocation be effective Feb. 1, 2008, for all qualifying transmission facilities approved in the Midwest ISO planning process after Aug. 1, 2007.
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