Utility Dive•about 1 month ago
FERC dismisses cost allocation complaint over ‘self-planned’ AEP transmission projects
Key Takeaway
FERC's decision on AEP's transmission cost allocation reinforces that benefits from utility-planned projects can be spread across an integrated network, impacting how transmission costs are borne by developers and large consumers.
AI Summary
- •FERC dismissed a cost allocation complaint, affirming that Kentucky Power, as part of the broader AEP transmission network, benefits from 'self-planned' transmission projects across that network.
- •This ruling impacts how transmission project costs are distributed within large, integrated utility systems like AEP, potentially influencing rates for large power consumers and the financial viability of new generation projects connecting to these networks.
- •The decision clarifies FERC's stance on cost allocation for utility-initiated transmission, suggesting that benefits can be broadly defined and costs spread across an interconnected system rather than solely borne by local entities.
Topics
fercpolicytransmission