On September 16, 2015, the Commission dismissed a petition filed
by the Working group for Investment in Reliable and Economic
electric Systems ("WIRES") in which WIRES requested that
the Commission institute a generic proceeding to determine whether
the Commission's discounted cash flow ("DCF")
methodology continues to be the most appropriate method of
computing public utility Return on Equity ("ROE").
In its June 26, 2013 petition, WIRES argued, among other things,
that a mechanistic application of the DCF methodology can yield
unreasonable rates of return, depending on the prevailing economic
environment, and does not sufficiently consider expected economic
developments or the foreseeable, long-term benefits of transmission
projects. WIRES recommended in its petition that the
Commission adopt a new ROE policy that: (i) standardizes the
selection of proxy groups; (ii) denies complainants a hearing on
rates of return for existing facilities unless it is shown
