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ARTICLE · 03 FEBRUARY 2013

FERC Refines Priority Rights To Participant-Funded Transmission

Morgan Lewis
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The Federal Energy Regulatory Commission issued a Policy Statement providing guidance on the allocation of capacity for (a) new merchant transmission projects and (b) nonincumbent, cost-based, participant-funded transmission projects.

United StatesEnergy and Natural Resources
John McGrane
John McGrane
Glen Bernstein
Glen Bernstein
Christina Vitale
Christina Vitale

On January 17, the Federal Energy Regulatory Commission (FERC) issued a Policy Statement providing guidance on the allocation of capacity for (a) new merchant transmission projects and (b) nonincumbent, cost-based, participant-funded transmission projects.1 Specifically, FERC will now permit the following:

  • Developers to select a subset of customers (that are based on not unduly discriminatory or preferential criteria) and negotiate directly with those customers to reach agreement on rates, terms, and conditions
  • Allocation of up to 100% of transmission capacity through bilateral negotiations, provided the following two conditions are met:
  1. Developers broadly solicit interest in the project from potential customers.

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