IMPROVING U.S. TRANSMISSION EXPANSION POLICY THROUGH ORDER NO. 1000

Richard M. Benjamin

Contemporary Economic Policy, 2016, vol. 34, issue 4, 614-629

Abstract: type="main" xml:id="coep12158-abs-0001"> This article examines the latest attempt of the United States' regulatory agency, the Federal Energy Regulatory Commission (FERC), to promote transmission expansion through the transmission planning and cost allocation principles contained in its recently issued Order No. 1000. It finds the level of detail contained in the order's cost allocation principles to be insufficient to achieve FERC's goals. It argues that the order does provide important principles for both transmission planning and expansion, though. It thus presents a cost allocation methodology which channels the order's strengths. Specifically, the methodology obtains an estimate of the benefits of a project and aligns the costs and benefits of the project accordingly. (JEL K23, Q48)

Date: 2016
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