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Legal Update

FERC Issues A Policy Statement Regarding Capacity Allocation For Certain New Transmission Projects

23 January 2013
Mayer Brown Legal Update
The US Federal Energy Regulatory Commission (FERC) has issued a final Policy Statement (Statement) to refine and clarify its policy guidance regarding capacity allocation for new merchant transmission projects and non-incumbent cost-based, participant-funded transmission projects. By assuring the availability of transmission to phased renewable and other projects and providing greater rate certainty for the owners and financing parties of such projects, the Policy Statement should facilitate the development of new generation projects, such as wind farms, that require the construction of associated transmission facilities. The policy became effective on January 17, 2013.

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