"The ruling is a setback for consumer advocates."
"Feds largely back utilities on transmission profits" by Erin Ailworth | Globe Staff June 28, 2014
A recent federal decision allows New England utilities to essentially maintain the level of guaranteed profits for building transmission, a sign that regulators want to ensure that utilities have the financial incentive to upgrade the region’s system for delivering electricity.
Under the ruling made late last week, the Federal Energy Regulatory Commission cut the rate of return on transmission investments by about 5 percent, from 11.14 percent to 10.57 percent. Consumer advocates had sought a much deeper cut.
The decrease is expected to save New England ratepayers, who typically bear the cost of utility projects, some $50 million. That’s less than half the savings consumer advocates had hoped for. The rate of return remains much too generous to utilities, they said.
“They should be trying to balance the interests of consumers and the interests of investors,” said attorney Charlie Harak, with the nonprofit National Consumer Law Center in Boston. Instead, he said, regulators “really tilted the field toward investors.”
The federal government did that?
The decision comes as the New England states work together to bring more energy into the region, including hydropower from Canada. Several proposals are in the works. Local power officials have said such projects are needed to help replace recently shuttered coal and nuclear plants, as well as ensure that the region can meet future energy demand....
Also see:
Hopes for hydro may blow away offshore wind
Cape Wind gets $150m boost
First Wind sees setbacks in Maine
Pffffft!
Just cut some wind myself, phew!
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