Briefly

FERC Issues Policy Statement on Allocation of Merchant Transmission Capacity

FERC issued a final policy statement to clarify and refine its policies governing the allocation of capacity for new merchant transmission projects and new non-incumbent, cost-based, participant-funded transmission projects. Under the policy statement, the Commission, "will allow developers of such projects to select a subset of customers, based on not unduly discriminatory or preferential criteria, and negotiate directly with those customers to reach agreement on the key rates, terms, and conditions for procuring up to the full amount of transmission capacity, when the developers (1) broadly solicit interest in the project from potential customers, and (2) demonstrate to the Commission that the developer has satisfied the solicitation, selection and negotiation process criteria set forth herein." Link to Policy Statement. Docket AD12-9

FERC Disclaims Jurisdiction Over Texas Lines from SPP Footprint to ERCOT

FERC disclaimed jurisdiction over two transmission projects linking generation in the SPP footprint with ERCOT, stating that as a result of the projects, utilities in ERCOT that are not currently public utilities under the Federal Power Act will not become public utilities as a result of the projects. The projects are interconnection facilities for Blue Summit Wind, LLC (EL13-17) and certain CREZ projects from Electric Transmission Texas, LLC.

New York PSC Orders National Grid to Better Manage Costs from Affiliate Service Companies

The New York PSC ordered National Grid's New York utilities to more actively manage and control service company costs, including periodic competitive benchmarking of the costs of services purchased from affiliates to the cost of obtaining the services from alternative sources. Such affiliates include National Grid USA Service Company, Inc., National Grid Corporate Services, LLC, National Grid Utilities Services, LLC, and National Grid Engineering and Survey, Inc., and may be identified in some quarters as electricity service companies or "ESCOs," but they are not retail suppliers (which the term ESCO typically refers to in New York). To be clear, the National Grid audit proceeding has no relation whatsoever to the retail electric or natural gas market or competitive suppliers. Case 10-M-0451