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Fortnightly Magazine - December 2011

the energy and capacity markets and to the projected environmental benefits that will be made possible by an enhanced and more efficient transmission grid.

2. In order to be eligible for FERC’s incentives, A) the project must ensure reliability or reduce congestion, B) there must be a nexus between the requested incentives and the risks and challenges faced by the project, including demonstrating that the project isn’t “routine,” and C) FERC must find the level or type of the incentives just and reasonable. Promoting Transmission Inv. Through Pricing Reform, Order No. 679, FERC Stats. & Regs. ¶ 31,222 (2006), order on reh’g, Order No. 679-A, FERC Stats. & Regs. ¶ 31,236, order on reh’g, Order No. 679-B, 119 FERC ¶ 61,062 (2007) (codified at 18 C.F.R. §§ 35.34-35). Also see, for example, Desert Southwest Power, LLC, 135 FERC ¶ 61,143 (2011).

3. TransBay Cable, LLC, 112 FERC ¶ 61,095 (2005).

4. TransÉnergie U.S., LTD, 91 FERC ¶ 61,230 (2000), Neptune Reg’l Transmission Sys., LLC, 96 FERC ¶ 61,147 (2001). It’s interesting to note that each of these successful transmission projects built by independents were primarily underwater cables that didn’t face significant state and local right-of-way problems.

5. Transmission Planning and Cost Allocation by Transmission Owning and Operating Pub. Utils., Order No. 1000, 136 FERC ¶ 61,051 (2011) (to be codified at 18 C.F.R. pt. 35.28).

6. Neptune Reg’l Transmission Sys., LLC, 96 FERC ¶ 61,147 at P 9.

7. TransÉnergie U.S., LTD, 93 FERC ¶ 61,289 (2000).

8. See, Chinook Power Transmission, LLC and Zephyr Power Transmission, LLC, 126 FERC ¶ 61,134 (2009); also see, Northeast Utilities Service Company and NSTAR Electric Company, 127 FERC 61,179, reh’g denied, 129 FERC ¶ 61,279 (2009), where FERC permitted 100 percent of the firm capacity of a proposed new line to be subscribed by one customer.

9. SunZia Transmission, LLC, 131 FERC ¶ 61,162 (2010) and Grasslands Renewable Energy LLC, 133 FERC ¶ 61,225 (2010).

10. SunZia Transmission, LLC, 135 FERC ¶ 61,169 at P 38 (2011).

11. FERC’s policy has allowed an affiliate of the generator to initially build and own the transmission line, provided that ultimate ownership isn’t retained by the affiliate, but is transferred to the generator, upon start of commercial operation.

12. See, PSEG Energy Res. & Trade, Cross Hudson LLC, 123 FERC ¶ 61,001 at P 26 (2008) (“PSEG/Cross Hudson”), reh’g denied, 128 FERC ¶ 61,212 (2009); Peetz Logan Interconnect, LLC, 122 FERC ¶ 61,086 (2008); Entergy Miss. and Attala Transmission, LLC, 112 FERC ¶ 61,228 (2005); NewCorp Res. Elec. Coop., Inc., 123 FERC ¶ 61,120 (2008); Golden Spread Elec. Coop., Inc., 127 FERC ¶ 61,248 (2009); Golden Spread Elec. Coop., Inc., 106 FERC ¶ 61,151 (2004).

13. Alta Wind I, LLC, 134 FERC ¶ 61,109 at P 16 (2011).

14. Id. at PP 17-18.

15. Transcript of Technical Conference at 142-48, Priority Rights to New Participant-Funded Transmission, Docket No. AD11-11 (Mar. 15, 2011) (“Technical Conference”). Also see Comments of Cedar Creek Wind Energy, LLC (May 5, 2011).

16. Transcript of Technical Conference at 109-16, 126, 129-30. Although generators have tried