The Hill News

In June, the Federal Energy Regulatory Commission (FERC) said all the right things about who will pick up the $160 billion tab to federalize America’s electricity grid. “Costs must be allocated at least roughly commensurate with estimated benefits; those that receive no benefits should not be allocated costs,” FERC Chairman Jon Wellinghoff stated when the Commission issued its Order 1000 on transmission planning and cost allocation.


For those worried about FERC forcing consumers in some states to subsidize long-distance transmission lines to nowhere, when cheaper and green sources of power were available closer to home, Wellinghoff’s statement was welcome news.


Of course, the proof is in the pudding. At FERC’s monthly meeting on October 20, we will learn whether “beneficiary pays” serves as the guiding principle of transmission policy or is just empty rhetoric. For the first time since FERC enunciated its transmission policy, th! e commission will demonstrate how Order 1000 will be implemented.



Unfortunately, there is little reason for optimism. Almost nothing in the commission’s 620-page transmission order supports FERC’s oratory. Order 1000 is riddled with major problems, creates uncertainty about its implementation, and gives too much power to regional organizations. The Commission intends to establish by regulatory fiat a national clean energy policy never endorsed by Congress and wants hard-pressed industries and homeowners to pay a surtax on their utility bills to finance it.


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