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ARTICLE · 20 NOVEMBER 2007

Energy Regulation October 2007 Updates

FERC Approves Request to Repay Generators for Network Facilities Constructed to Enable Interconnection to Two Midwest Transmission Companies.

United StatesEnergy and Natural Resources

FERC Approves Request to Repay Generators for Network Facilities Constructed to Enable Interconnection to Two Midwest Transmission Companies

Last month the Federal Energy Regulatory Commission (FERC) approved an application by ITC Transmission, Michigan Electric Transmission Company (METC), and the Midwest Independent Transmission System Operator (Midwest ISO) to repay generators interconnecting with their systems for the full cost of network upgrades necessary to enable those interconnections. Previously, generators interconnecting to the ITC Transmission and METC systems were required to bear half the costs of most network upgrades along with other costs of interconnection.

Under the newly approved policy, generators will be fully reimbursed for the costs of network upgrades necessary to enable their interconnection with the ITC Transmission and METC systems, provided the generators meet certain eligibility requirements. In FERC's words, "a network upgrade is considered part of

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