Utility Dive•about 1 month ago
Connecticut AG, agencies ask FERC to cut Eversource, Avangrid RTO adder
Key Takeaway
This regulatory challenge to utility ROE in ISO-NE signals a potential shift in transmission cost recovery, which could marginally benefit large power consumers and IPPs in Connecticut.
AI Summary
- •Connecticut's Attorney General and state agencies have filed a complaint with FERC to remove a 0.5% Return on Equity (ROE) adder for Eversource and Avangrid within ISO New England.
- •The complaint argues that a new state law mandating these utilities' participation in ISO-NE renders the incentive-based RTO adder, designed to encourage RTO membership, obsolete.
- •If FERC approves, this action could lead to a marginal reduction in transmission costs for large power consumers and IPPs in Connecticut, while signaling increased regulatory scrutiny on utility cost recovery mechanisms in the region.
Topics
fercpolicytransmission
Article Content
A new state law requires the utilities to participate in ISO New England, making them ineligible for an extra 0.5% return on equity, according to a complaint filed at the Federal Energy Regulatory Commission.