Utility Dive•about 1 month ago
New England transmission owners ask FERC for increased ROE
Key Takeaway
New England transmission owners' request for a significantly higher FERC-approved ROE signals increased transmission costs and regulatory uncertainty, directly impacting project economics for developers and electricity prices for large power consumers in the region.
AI Summary
- •New England transmission owners (Eversource, Avangrid, etc.) are seeking an 11.39% Return on Equity (ROE) from FERC, up from the recently set 9.57%.
- •Utilities cite 'current risk conditions' like the Iran war and supply chain constraints as reasons for needing a higher ROE to attract capital for transmission investments.
- •If approved, this increase in ROE will directly translate to higher transmission costs, impacting electricity prices for large power consumers and increasing the cost burden for new generation projects connecting to the grid.
- •This regulatory action highlights potential upward pressure on infrastructure costs and regulatory uncertainty for developers and large loads operating in New England.
Topics
datacenterfercfinancingpolicytransmission
Article Content
Eversource, Avangrid and other New England utilities seek an 11.39% return on equity weeks after FERC set it at 9.57%. Higher ROE is needed to attract capital given “current risk conditions,” such as the Iran war and supply chain constraints, they said.