Electric
E-1 – Electric Transmission Incentives Policy Under Section 219 of the Federal Power Act (Docket No. RM20-10-000). On March 20, 2020, the Commission issued a Notice of Proposed Rulemaking (NOPR) relating to electric transmission incentives policy pursuant to the Federal Power Act (FPA). In the NOPR, the Commission furnished proposed revisions to transmission planning and cost allocation processes following significant developments in the sector, reflecting a potential new focus on reliability and economic benefits rather than the current risks and rewards approach associated with specific projects. Further, the NOPR acknowledged policy shifts in the fifteen years following Order No. 679, which codified an approach to evaluate requests for incentives made by transmission owners and operators, as well as Order No. 1000 and the 2012 Policy Statement on transmission incentives applications. Namely, the NOPR proposed to: offer public utilities an return on equity (ROE) incentive for transmission projects that provide sufficient economic benefits; a similar ROE incentive for demonstrable reliability benefits; modify the incentive allowing public utilities to recover 100 percent of prudently incurred costs of transmission facilities that were cancelled due to exogenous factors beyond the control of the developer or owner; modify the existing ROE incentive attached to membership in an independent system operator (ISO) or regional transmission organization (RTO), such that it would be available irrespective of membership status; and offer incentives for technologies that will bolster reliability, efficiency, and capacity when deployed, among other provisions. By July 1, 2020, the Commission received numerous substantive comments from various stakeholders and industry groups. Agenda item E-1 may be a final rule pertaining to electric transmission incentives policy and related revisions.