A case study shows how today's typical tariffs can force some industrial electric customers to subsidize others.
There ought to be a better way for electric utilities to set prices for...
revenue neutrality with respect to transmission revenue?
Rule: ITP Must Employ Standard Market Design
Q. What regional exceptions are absolutely necessary for the viability of SMD? Q. What issues should be discussed with stakeholders and state representatives within 30 days of the final rule?
Q. How will SMD affect the competitiveness of native generation?
Q. How will SMD impact the calculation and recovery of energy and capacity charges under retail rates?
Q. How will SMD affect the value of specific transmission assets?
Q. What and how should existing transmission rights be allocated under SMD?
Q. What are the risks and costs of congestion not hedged by existing transmission rights?
Q. How will the distribution utility become a prudent energy purchaser? Will regulators in the future compare long-term contracts signed today against spot market prices in the future?
Q. Will the 12 percent capacity reserve requirements of SMD add to costs of serving load relative to today? Will the state(s) have more stringent capacity (reliability) requirements?
Q. What agreements for market operations and reliability are required to enable a smooth transition from an independent control area to a regional one?
Choice: Should a Utility Divest Grid Assets?
Q. Is ownership of a regulated asset a core competency?
Q. What are the attributes of the preferred buyer, e.g., ITC versus any buyer?
Q. What are the shareholder return consequences of divesting transmission assets?
Q.Are there bond covenants that make divestiture unattractive?
Q. How would FERC/state regulators treat the sale? What would the regulators allow the purchaser to assign as rate base?
Q. What conditions in the sale would be necessary to protect customers and gain regulatory approval? -L.O.
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