New Rules for Electric Transmission Projects
4 March 2009
Mayer Brown Legal Update
On February 19, 2009, the US Federal Energy Regulatory Commission (FERC) issued an order that is meant to encourage investment in the nation’s electricity transmission infrastructure and assist companies in obtaining the necessary support from state regulatory authorities, generators and load-serving entities for the development of merchant transmission projects. In Chinook Power Transmission, LLC and Zephyr Power Transmission, LLC, 126 FERC ¶ 61,134 (Feb. 19, 2009) (Chinook/Zephyr Order), FERC approved requests by both Chinook and Zephyr to charge negotiated rates for their proposed merchant transmission projects and, following FERC’s established practice with respect to interstate natural gas pipelines, approved Chinook’s and Zephyr’s proposals to presubscribe up to 50 percent of each project’s 3,000 MW of capacity to anchor shippers.