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Transmission Investment - Orders
September 8, 2008 - Commonwealth Edison Company and Commonwealth Edison Company of Indiana (EL07-41-002) 
The Commission addressed rehearing of an order that granted Commonwealth Edison’s (ComEd) petition for rehearing to allow for a 150 basis point (1.5 percent) adder to ComEd’s return on equity (ROE) for Phase II of the West Loop Project in Chicago. The Commission granted rehearing, in part, to the limited extent that it acknowledged that the order failed to analyze the total package of incentives under Order No. 679, however, the Commission reached the same conclusion regarding the appropriateness of granting incentives.
August 29, 2008 - Virginia Electric Power Company (ER08-1207-000 and -001)
The Commission granted Virginia Electric Power Company’s (VEPCO) request for transmission incentives in the form of 125 and 150 basis point adders to its return on equity for 11 transmission projects in Virginia and parts of the PJM Interconnection (PJM). Between 2008 and 2012, VEPCO expects to triple its capital investment to $2.1 billion. Four of the 11 projects are part of the PJM’s Regional Transmission Expansion Plan.
August 22, 2008 - Pepco Holdings, Inc. (ER08-686-000)
The Commission granted Pepco Holdings, Inc., effective June 1, 2008, their request for a 150-basis point return on equity (ROE) adder for the projects because the projects were approved baseline projects by the PJM Regional Transmission Expansion Plan, which means that PJM made a determination that the projects are regional in nature and mitigate congestion or ensure PJM’s ability to continue to serve load reliably. Pepco Holdings, Inc. will upgrade existing substation equipment, add new substations, rebuild and reconduct existing lines, and add discrete transmission lines. Pepco Holdings, Inc. also sufficiently demonstrated that the projects are not routine and that, individually and combined, they address significant reliability issues.
July 17, 2008 - Northeast Utilities Service Company (ER08-966-000)
The Commission granted Northeast Utilities Service Co.’s request for a limited waiver of the December 31, 2008 completion date for the 100 basis point return on equity (ROE) incentive that the Commission previously approved for Northeast Utilities’ share of the Middletown-to-Norwalk Project, a transmission project in Southwest Connecticut jointly owned by Northeast Utilities and the United Illuminating Company. The waiver allows Northeast Utilities Service Co. to collect the incentive for the Middletown-to-Norwalk Project even though it will not be placed in service by the December 31, 2008 date. The Commission also granted a 50 basis point ROE advanced transmission technologies adder for the costs associated with the underground XLPE cable.
June 23, 2008 - Southern California Edison Company (EL07-62-001)
The Commission denied rehearing of an order granting Southern California Edison Co.’s (SCE) petition for a declaratory order. In the order, the Commission approved incentive rate treatment for the Devers-Palo Verde II Project, which consists of the construction of two major transmission lines; the Tehachapi Project, which consists of more than 200 miles of 500 kV transmission line, approximately 10 miles of 220 kV transmission line and three new substation facilities; and the Rancho Vista Project, which includes a proposed new 500 kV substation.
June 13, 2008 - Baltimore Gas & Electric Company (ER07-576-000 and ER07-576-004)
The Commission denied rehearing of an order that determined that Baltimore Gas & Electric’s (BG&E) request for transmission rate incentives for transmission owner-initiated (TOI) projects qualifies for a Return on Equity (ROE) transmission rate incentive. The order approved a 100-basis point ROE incentive for the TOI facilities, which were designed to improve the reliability and safety of BG&E facilities in Baltimore and Carroll counties, Maryland.
May 9, 2008 - Duquesne Light Company (EL06-109-000, et al.)
The Commission accepted an uncontested settlement filed by Duquesne Light Co. (Duquesne) concerning the establishment of a return on equity to be used by Duquesne in its formula rates. The Settlement establishes a revenue requirement for Network Integration Transmission Service, provides for a base-level return on equity of 10.9 percent, a five-year rate moratorium applicable to merger-related costs, and recovery of costs associated with post-employment benefits other than pensions. The Commission also accepted a related compliance filing supporting Duquesne’s proposed transmission investment rate incentives, specifically a showing that the underlying transmission upgrades are necessary to maintain reliable transmission service.
April 29, 2008 - Virginia Electric Power Company (ER08-92-000, et al.
The Commission granted Virginia Electric and Power Company (VEPCO)’s requested 50 basis point adder to the return on equity (ROE) reflected in its formula rate as an incentive for continued membership in a regional transmission organization. The Commission accepted the formula rate proposed by VEPCO, with certain modifications, rejected its proposed ROE and required a compliance filing. With the adder, the Commission approved a combined ROE of 11.4 percent.
April 22, 2008 - PPL Electric Utilities Corporation, Public Service Electric and Gas Company (EL08-23-000)
The Commission granted certain transmission rate incentives for PPL Electric Utilities Corporation and Public Service Electric and Gas Company project, designated the Susquehanna-Roseland Line, which will span 130 miles across Pennsylvania to northern New Jersey. Specifically, the Commission approved a 1.25 percentage adder for the utility’s base return on equity, a reduction from the 1.50 percent that was requested; a one-half percent adder to each utility’s base return on equity for continued membership in PJM Interconnection; a 100 percent recovery of prudently incurred expenses for construction-work-in-progress to be included in rate base; abandonment incentives; and authority to transfer the incentives to as-yet unidentified affiliates.
April 21, 2008 - Pacific Gas and Electric Company (EL08-24-000)
The Commission partially approved Pacific Gas and Electric Company’s (PG&E) petition for a declaratory order for recovery of prudently incurred pre-commercial and abandonment costs related to a proposal that would deliver up to 3,000 megawatts of new renewable power from British Columbia, Canada and the Pacific Northwest to California. Given the early stage of the proposed $3.2 billion project, however, the Commission deferred a decision on PG&E’s request for construction-work-in-progress and return on equity incentives.
March 31, 2008 - Startrans IO, L.L.C. (ER08-413-000 and ER08-413-001)
The Commission conditionally accepted, in part, Startrans IO L.L.C.’s (Startran) proposed rate incentives. Startrans is proposing to purchase facilities from the City of Vernon and requesting approval of its transmission revenue requirement and Transmission Owner Tariff associated with the acquisition. The Commission accepted the proposed return on equity of 13.5 percent but rejected Startrans’ requested acquisition premium and 100 percent Construction Work in Progress incentives.
March 24, 2008 - The Nevada Hydro Company, Inc. (ER06-278-000, et al.)
The Commission granted the Nevada Hydro Company, Inc. (Nevada Hydro) certain transmission rate incentives for the Talega-Escondido/Valley-Serrano Interconnect project (TE/VS Interconnect) in Riverside County in Southern California. The 500 kilovolt transmission line would link San Diego Gas & Electric Company’s transmission system with Southern California Edison. The Commission granted the incentive equity return and a hypothetical 50 percent equity/50 percent debt capital structure during the construction period for its proposed TE/VS Interconnect. The Commission, however, denied Nevada Hydro’s request for full recovery of Construction Work in Progress and abandonment costs for the TE/VS Interconnect; a request for a three-year rate moratorium for the TE/VS Interconnect and rate incentives for the Lake Elsinore Advanced Pump Storage project.
March 24, 2008 - Westar Energy Inc. (EL08-31-000 and ER08-396-000)
The Commission granted Westar Energy, Inc. (Westar) incentive rate treatment for a 345 kilovolt (kV) transmission upgrade project known as the Wichita-to-Reno-to-Summit Line due to the project’s ability to ensure reliability and reduce the delivered cost of power. The Commission, however, denied incentive rate treatment for Westar’s proposed 345 kV transmission line from the Rose Hill substation to the Kansas/Oklahoma border and a 560 MVA 345 kV to 230 kV transformer.
March 24, 2008 - Bangor Hydro (ER04-157-014 and ER04-714-006
The Commission addressed rehearing of an order that authorized a return on equity (ROE) for the owners of the ISO New England (ISO-NE) transmission grid, including an incentive rate to encourage badly needed transmission expansion and ensure grid reliability in the New England region. On rehearing, the Commission reaffirmed its decision to allow the transmission owners within ISO-NE to earn an ROE of 12.4 percent, which includes a 100 basis point adder, for new projects that are completed and on line by Dec. 31, 2008. The Commission granted rehearing in ruling that projects that come on line after that date will be examined on a case-by-case basis and must be consistent with Order No. 679 in order to qualify for an incentive ROE.
February 29, 2008- Southern California Edison Company (ER08-375-000)
The Commission accepted Southern California Edison Co. (SoCal Edison) revisions to its Transmission Owner Tariff to reflect proposed changes to its transmission revenue requirement and transmission rates to implement Construction Work in Progress rate incentives, suspended them for a nominal period, subject to refund and subject to the outcome of a paper hearing. Southern California Edison is proposing to build three projects: the Devers-Palo Verde II Project, which consists of the construction of two major transmission lines; the Tehachapi Project, which consists of more than 200 miles of 500 kV transmission line, approximately 10 miles of 220 kV transmission line and three new substation facilities; and the Rancho Vista Project, which includes a proposed new 500 kV substation. The Tehachapi Project will allow significant amounts of wind generation to interconnect with the Southern California Edison’s transmission system.
February 29, 2008- Potomac-Appalachian Transmission Highline (ER08-386-000)
The Commission addressed the Potomac-Appalachian Transmission Highline’s (PATH) request to implement a transmission cost of service formula rate for a proposed transmission project and implement incentive rate authorization for the project, which is a proposed 290-mile transmission line that begins at AEP’s Amos substation near St. Albans, West Virginia, with a terminus at the Doubs substation in Kemptown, Maryland. The Commission granted the following transmission rate incentives: (1) a return on equity (ROE) of 14.3 percent inclusive of a 50 basis point ROE adder for RTO participation (in PJM Interconnection); (2) recovery of 100 percent of prudently-incurred construction work in progress in rate base; (3) recovery of 100 percent prudently-incurred abandoned plant; (4) recovery of pre-commercial costs and (5) hypothetical capital structure.
February 19, 2008 - Atlantic Path 15 LLC ( ER08-374 and EL08-38-000)
The Commission addressed a proposed tariff change filed by Atlantic Path 15 (Atlantic) to decrease rates that it charges for transmission service over the transmission line upgrade (Path 15 Upgrade) and related substation upgrades to the Path 15 corridor financed by Atlantic. The Commission established hearing and settlement procedures to review the filing and summarily approved Atlantic’s proposed 13.5 percent return on equity, based on the record evidence included in its application. The Path 15 Upgrade is an 83-mile, 500-kilovolt transmission line built along the existing Path 15 corridor in California to relieve a seriously constrained congestion point.
January 18, 2008 - Commonwealth Edison Company and Commonwealth Edison Company of Indiana (EL07-41-001 and ER07-583-003)
The Commission addressed rehearing of an order that denied Commonwealth Edison’s (ComEd) petition for transmission incentives requested for three transmission projects. The Commission granted rehearing to allow for a 150 basis point (1.5 percent) adder to ComEd’s return on equity (ROE) for Phase II of the West Loop Project in Chicago. The adder results in an overall 13 percent ROE for this project and allows construction-work-in-progress (CWIP) in the rate base. The Commission denied incentives for two other completed projects and rejected ComEd’s request for blanket CWIP treatment.
January 17, 2008 - Baltimore Gas & Electric Company (ER07-576-003)
The Commission denied Baltimore Gas & Electric’s (BG&E) request for rehearing of the Commission’s decision to deny incentive rate treatment for 37 future transmission projects. The Commission refused to approve incentive rate treatment without careful scrutiny of each project for which the incentives are sought, as the Commission requires a case-specific showing that a nexus exists between the incentive being sought and the transmission project.
December 21, 2007 - Xcel Energy Services (ER07-1415-000)
The Commission granted the NSP Companies’ request for a 100 percent Construction Work in Progress in rate base and 100 percent Abandoned Plant Recovery, contingent on the receipt of the Certificate of Need for the proposed projects from the Minnesota Public Utility Commission. The NSP Companies are currently undergoing a major electric transmission expansion program designed to provide the transmission infrastructure necessary to meet state renewable energy generation standards and reliably serve increased loads in the five state region served by the NSP Companies.
November 16, 2007 - Pepco Holdings (ER08-10-000)
The Commission granted Pepco Holdings’s request to implement a transmission rate incentive of 50-basis points for continued membership in PJM Interconnection. Pepco Holding’s request was filed on behalf its transmission-owning public utility affiliates, Atlantic City Electric Company, Delmarva Power and Light Company and Potomac Electric Power Company.
November 16, 2007 - Baltimore Gas & Electric Company (ER07-576-000 and ER07-576-001)
The Commission determined that Baltimore Gas & Electric’s (BG&E) request for transmission rate incentives for transmission owner-initiated (TOI) projects qualifies for a Return on Equity (ROE) transmission rate incentive. The order approved a 100-basis point ROE incentive for the TOI facilities, which were designed to improve the reliability and safety of BG&E facilities in Baltimore and Carroll counties, Maryland.
November 16, 2007 - Southern California Edison Company (EL07-62-000)
The Commission FERC found that Southern California Edison’s proposed projects meet the rebuttable presumption, established in Order No. 679, of eligibility for incentive rate treatment because they have been approved by a regional planning process. Specifically, Southern California Edison is proposing to build three projects: the Devers-Palo Verde II Project, which consists of the construction of two major transmission lines; the Tehachapi Project, which consists of more than 200 miles of 500 kV transmission line, approximately 10 miles of 220 kV transmission line and three new substation facilities; and the Rancho Vista Project, which includes a proposed new 500 kV substation. The Tehachapi Project will allow significant amounts of wind generation to interconnect with the Southern California Edison’s transmission system.
October 2, 2007 - Trans-Allegheny Interstate Line Company (ER07-562-002 and ER07-562-003)
The Commission denied rehearing of an order that accepted Trans-Allegheny Interstate Line Co’s (TrAILCo) formula rate, subject to conditions, and suspended it for a nominal period, to become effective on June 1, 2007, as requested, subject to refund. The TrAIL Project is a proposed 500 kilovolt transmission line that is to be constructed from southwestern Pennsylvania to West Virginia to Northern Virginia, within the PJM Interconnection region.
July 24, 2007 - Baltimore Gas & Electric Company (ER07-576-000 and ER07-576-001)
The Commission accepted Baltimore Gas &Electric’s (BG&E) return on equity adder for continuing membership in PJM and for baseline facilities. The order set for technical conference BG&E’s return on equity adder for Transmission Owner Initiated projects. The Commission also rejected BG&E’s return on equity adder for future transmission projects and its construction work in progress incentive and set forth a new policy on “routine” projects and the nexus test.
June 5, 2007 - Commonwealth Edison Company and Commonwealth Edison Company of Indiana (EL07-41-000, ER07-583-000 and ER07-583-001)
The Commission denied Commonwealth Edison’s (ComEd) petition for a declaratory order requesting incentive rate treatment and set ComEd’s proposed cost-of-service formula rate for hearing and settlement judge procedures. Specifically, ComEd requested that the Commission approve a 150 basis points return on equity incentive for the two specified projects; and (2) the ability to recover 50 percent construction work-in-progress in rate base for Phase II of the West Loop.
May 31, 2007 - Trans-Allegheny Interstate Line Company (ER07-562-000 and ER07-562-001)
The Commission addressed Trans-Allegheny Interstate Line Co’s (TrAILCo) filing to implement a transmission cost of service formula rate for TrAILCo and an incentive rate authorization for a previously-qualified facility, the Trans-Allegheny Interstate Line Project (TrAIL Project). The TrAIL Project is a proposed 500 kilovolt transmission line that is to be constructed from southwestern Pennsylvania to West Virginia to Northern Virginia, within the PJM Interconnection region. Specifically, the Commission accepted TrAILCo’s proposed formula rate, subject to conditions, and suspended it for a nominal period, to become effective on June 1, 2007, as requested, subject to refund.
May 22, 2007 - The United Illuminating Company (ER07-653-000)
The Commission conditionally granted United Illuminating Co.’s petition for transmission rate incentives in connection with a proposed transmission construction project located from Middletown to Norwalk, Connecticut. Specifically, the Commission granted 100 percent CWIP recovery, and accepted the 50 basis point return on equity adder for the underground portion of the Project, subject to certain conditions.
February 7, 2007 - Duquesne Light Company (EL06-109-000, et al.)
The Commission conditionally granted Duquesne Light Co.’s petition for transmission rate incentives in connection with a proposed $184 million transmission expansion project in Western Pennsylvania. The Commission directed Duquesne to file additional information in support of its request for incentive rates for transmission upgrades known as Transmission Owner Identified projects in PJM’s regional transmission expansion planning process within 30 days.
January 19, 2007 - American Electric Power Service Corporation (EL06-50-001)
The Commission denied rehearing of an order that granted the petition for declaratory order approving the incentive rate treatment proposed by American Electric Power Service Corp. for a new 765 kilovolt transmission line that AEP Transco is proposing to build. The proposed transmission line would extend from West Virginia to New Jersey. The Commission conditioned its approval on the proposed project being included as part of the PJM Interconnection Regional Transmission Expansion Plan.
January 19, 2007 - Allegheny Energy, Inc., et al (EL06-54-001)
The Commission denied rehearing of an order that granted a petition for declaratory order filed by Allegheny Energy, and its subsidiaries, approving Allegheny’s proposed incentive rate treatment for a new 500 kilovolt transmission line, which would extend from southwestern Pennsylvania to Virginia.
November 17, 2006 - Nevada Hydro (ER06-278-000)
The Commission deferred ruling on the merits of certain rate incentives requested by the Nevada Hydro Co. for its proposed combined generation pumped storage/transmission project, pending submission of additional information necessary to complete the Commission’s evaluation of the Nevada Hydro Co.’s proposal. Specifically, for the rate incentives on the generation portion of the combined project, the Commission needed more information to determine whether the transmission asset should be included in the California Independent Service Operator Corp. Transmission Access Charge.
October 31, 2006 - Bangor Hydro (ER04-157-004) Opinion No. 489
The Commission authorized a return on equity for the owners of the ISO New England transmission grid, including an incentive rate to encourage badly needed transmission expansion and ensure grid reliability in the New England region. The Commission affirmed in part, and reversed in part, a May 2005 Initial Decision by a Commission administrative law judge order approving returns on equity of 11.7 percent covering the initial rate effective date (February 1, 2005), until the date of the order, and 12.4 percent going forward.
July 20, 2006 - AEP (EL06-50-000)
The Commission conditionally approved proposed incentive rates for American Electric Power Service Corp.’s new 765-kilovolt, 550-mile transmission line that would extend from West Virginia to New Jersey. The approved incentives include: (1) an ROE set at the high end of the zone of reasonableness; (2) the option to timely recover the cost of capital associated with construction work in progress (CWIP); and (3) the ability to expense and recover the costs AEP incurs during the pre-construction and pre-operating period.
July 20, 2006 - Allegheny Energy (EL06-54-000)
The Commission granted the four incentives requested by the company and its subsidiaries, Monongahela Power Co., Potomac Edison Co. and West Penn Power Co. Allegheny proposes to construct a 500-kilovolt transmission line within the PJM region. The proposed line would extend from southwestern Pennsylvania to Virginia. The approved incentives would include an ROE on the high end of the zone of reasonableness, recovery of CWIP and the ability to expense and recover pre-construction and pre-operating costs.
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