The Federal Energy Regulatory Commission’s recent overhaul of how it will determine acceptable investor returns for electricity transmission companies could reduce the number of rate disputes the commission must referee by significantly raising the jurisdictional bar for would-be challengers, experts say.
The effects of that change are compounded by FERC saying it will only determine an existing ROE is unjust and unreasonable if it’s outside the zone of reasonableness or there’s enough evidence to rebut the presumption that an ROE within the zone is reasonable. The combination could stop many ROE challenges in their tracks, experts say.
“It’s a game changer for consumers,” said McCarter & English LLP partner Denise Goulet, a former utility consumer advocate in Pennsylvania and West Virginia. “They’re setting this up as a bar to even get in the door to litigate an ROE.”
Click to read the full article: “FERC Redo of Grid Rate Reviews May Pull Plug on Disputes“