FERC Grants Transmission Incentives
- Nov 26, 2019 6:54 pm GMT
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FERC granted transmission rate incentives to the New York Power Authority (NYPA) in its Order dated November 21, 2019 in Docket No. EL19-88. On August 12, 2019, NYPA had requested incentive rate treatment for its portion of the investment in the AC Projects (competitive project in New York where NYPA and NY Transco were selected to develop the project). Specifically, NYPA requested: (1) recovery of 100 percent of prudently-incurred plant costs in the event its project must be abandoned for reasons outside of NYPA’s reasonable control (Abandoned Plant Incentive); (2) inclusion of 100 percent of Construction Work in Progress (CWIP) in rate base (CWIP Incentive); and (3) a 50-basis point return on equity (ROE) adder (ROE Risk Adder). FERC granted the Abandoned Plant Incentive and the CWIP Incentive, to be effective the date of this order, and also granted the 50-basis point ROE Risk Adder, to be effective the date of this order, subject to FERC’s action on future NYPA filing to incorporate the ROE Risk Adder and a cost containment provision into its Formula Rate.