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ARTICLE · 08 MARCH 2009

New Rules for Electric Transmission Projects – The FERC “Three-Step”: One Step Forward, One Step Back, One Leap Coming

Mayer Brown
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On February 19, 2009, the US Federal Energy Regulatory Commission (FERC) issued an order that is meant to encourage investment in the nation’s electricity transmission infrastructure and assist companies in obtaining the necessary support from state regulatory authorities, generators and load-serving entities for the development of merchant transmission projects.

United StatesEnergy and Natural Resources
David Bloom
David Bloom
Angela O'Brien
Angela O'Brien
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Originally published March 4, 2009

Keywords: US Federal Energy Regulatory Commission, electricity transmission infrastructure, FERC, Chinook Power Transmission, Zephyr Power Transmission, Piedmont Environmental Council, Federal Power Act, transmission facilities

On February 19, 2009, the US Federal Energy Regulatory Commission (FERC) issued an order that is meant to encourage investment in the nation's electricity transmission infrastructure and assist companies in obtaining the necessary support from state regulatory authorities, generators and load-serving entities for the development of merchant transmission projects.  In Chinook Power Transmission, LLC and Zephyr Power Transmission, LLC, 126 FERC ¶ 61,134 (Feb. 19, 2009) (Chinook/Zephyr Order), FERC approved requests by both Chinook and Zephyr to charge negotiated rates for their proposed merchant transmission projects and, following FERC's established practice with respect to interstate natural

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