We Need FERC Transmission Incentive Policies That Exist Today

Deck: 

ITC Holdings

Fortnightly Magazine - October 2021
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The Federal Energy Regulatory Commission's (FERC) transmission incentives policy has been a success story of grid modernization and societal advancement. Deployed in response to the inadequate transmission system of the late 1990s and early 2000s, FERC's toolbox of incentives has produced tangible benefits for consumers in more efficient markets, reduced congestion, decreased service interruptions, and provided access to newer and cleaner forms of generation.

Our nation's energy landscape continues to undergo a fundamental transition to zero-emission renewable generation due to customer demands, market forces, and state policies. The time has come for FERC to forcefully reiterate to the power sector that investments in transmission infrastructure are a national priority.

Unfortunately, whether intentional or not, recent actions from the Commission suggest the contrary. FERC is wading into dangerous waters on transmission incentives that may have unintended and potentially dire consequences for meeting our energy needs as climate change and associated violent weather intensifies.

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