WIRES, an international non-profit trade association that promotes investment in the high voltage electric transmission grid to sustain the North American electric economy, submitted supplemental comments today in response to FERC’s NOI: Policy to Determine Return on Equity (Docket No. PL19-4-000).
“Although FERC has not issued a generic rule for public utility base return on equity (“ROE”) in the NOI proceeding, the Commission has made substantive changes to its base ROE methodology in other case-specific proceedings. WIRES believes those case specific determinations, while offering steps in the right direction, do not fully resolve the need for regulatory certainty and stable ROEs into the future. WIRES encourages FERC to take further action to address those issues.
WIRES believes investment in transmission needs to be encouraged now more than ever. The COVID-19 pandemic has devastated the economy and decisive action is needed to stimulate a sustained, robust and vigorous economic recovery. The pandemic has highlighted the benefits of cleaner air and the importance of a clean energy future. New and upgraded transmission infrastructure is necessary to integrate more renewable generation, as well as to enhance grid resiliency, and must be part of any planned economic recovery. FERC has a key role in fostering a positive environment for transmission. The Commission must focus on establishing an ROE methodology that will provide regulatory certainty, spur much needed transmission investment and produce just and reasonable results.”
Larry Gasteiger, Executive Director