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Unpublished Paper
Unfettering the Grid: Spurring Transmission Investment by Reducing Regulatory Ambiguity
(2012)
  • Andrew Emerson, George Washington University
Abstract

Streamlining the regulatory framework that underlies the development of the United State’s energy grid is essential to maintaining current levels of energy reliability while incorporating new renewable energy resources. Since 1996, the Federal Energy Regulatory Commission (FERC ) has advanced regulatory policies intended to develop competitive energy markets in the United State, however, these regulations have consistently failed to provide specific formulas by which market participants could determine how much they should be charged for the use of transmission lines. In doing so, these regulations have resulted in ongoing judicial controversy and costly project delays.

This paper argues that to promote the development of renewable energy-friendly transmissions lines and eliminate litigation delays, FERC should amend its latest regulation, Order No. 1000, to directly allocate the costs associated with meeting renewable portfolio standards (RPSs) to owners who benefit from meeting state renewable targets. This approach will unfetter investment in transmission projects aimed at servicing renewable power sources by reducing overall project costs, increasing the potential for litigation-free cost-allocation, and expanding the number of transmission projects aimed at bringing renewable power to regional energy markets.

Keywords
  • Transmission Cost Allocation,
  • Renewable Energy Development,
  • Renewable Portfolio Standards,
  • Open Access Transmission Tariff,
  • FERC Order 1000
Publication Date
Spring 2012
Citation Information
Andrew Emerson. "Unfettering the Grid: Spurring Transmission Investment by Reducing Regulatory Ambiguity" (2012)
Available at: http://works.bepress.com/andrew_emerson/2/