The Aftermath of Primary Power and Its Implications for Independent Transmission in PJM

Elias G. Farrah and S. Shamai Elstein

The Electricity Journal, vol. 23, issue 7, 16-32

Abstract: The recent decision by the Federal Energy Regulatory Commission in "Primary Power" will have fundamental ramifications for transmission investment in the far-reaching PJM footprint. This decision, which is pending on rehearing and will likely be appealed, will determine whether transmission projects that are entitled to regulated rate recovery under the PJM tariff can only be built by incumbent transmission owners and whether new independent transmission entities are limited to building transmission projects on a "merchant" basis.

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