A Word with Transmission-Only Utility: American Transmission Company - [an Energy Central Power Perspectives™ Interview]
- Mar 22, 2019 4:03 am GMT
Last month, four Alaska utilities submitted an application with the Regulatory Commission to form a transmission-only utility in Alaska’s Railbelt region. What are the benefits to becoming a transmission-only utility or transco? Should more utilities consider this business model as an opportunity to expand, upgrade and compete?
Consolidating resources and expertise are the obvious benefits. A transmission-only business model allows utilities to focus all of their efforts into transporting power from where it’s generated to where it’s needed. In line with rules established by FERC to bolster transmission investments, a transmission-only utility can promote reliability and lower costs while upgrading infrastructure and reducing transmission congestion. Transmission investment continues to be driven by the need to upgrade aging infrastructure and to expand delivery of new sources of power to population centers.
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