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FERC Issues Proposed Rulemaking to Revise Incentive Rate Policies

On March 19, 2020, the Federal Energy Regulatory Commission (“FERC”) announced a Notice of Proposed Rulemaking (“NOPR”) (dated March 20, 2020) that proposes revisions to FERC’s current incentive rate policies for electric transmission investments.

The proposed transmission incentive rate policy changes include nine areas of revision summarized in paragraphs 3 through 11 of the NOPR.

FERC’s NOPR follows a March 21, 2019, Notice of Inquiry (“NOI”) where FERC extensively reviewed its incentive policies.

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