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Duquesne request for authorization for incentive rate treatment

Paul Dumais's picture
CEO Dumais Consulting

Owner and CEO of Dumais Consulting (www.DumaisConsulting.com) which provides expert ratemaking services to energy companies. Dr. Dumais is a ratemaking and regulatory expert who specializes on...

  • Member since 2018
  • 148 items added with 112,901 views
  • Jun 28, 2022
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In Docket No. ER22-1707, on April 26, 2022, Duquesne Light Company (Duquesne) submitted a request for authorization for incentive rate treatment related to its investment in the Brunot Island – Carson 345 kV Underground Cable Forced Cooling Project (Project) – a $26 M project. Specifically, Duquesne seeks authorization to include 100% of construction work in progress (CWIP) for the Project in Duquesne’s rate base under its formula rate during the development and construction phase of the Project (CWIP Incentive). On June 24, 2022, FERC granted Duquesne’s request. Commissioner Christie concurred, but said, “However, as I have previously expressed, I have significant concerns with the Commission’s existing incentives policies and in particular with the CWIP incentive, which the Commission has routinely doled out to anyone who requests it. The Commission recently proposed to eliminate the CWIP Incentive in its April 2022 Transmission Planning and Cost Allocation NOPR, a proposal I continue to strongly support."

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