The Federal Energy Regulatory Commission (FERC) has rejected anti-consumer proposals by PJM Interconnection and a group of transmission owners that would have given transmission owners more control over power grid planning. CUB is grateful to Earthjustice, who acted as our legal counsel, and our partners in this case: Delaware Division of the Public Advocate, Office of the People’s Counsel for the District of Columbia, Natural Resources Defense Council, Sierra Club, and Sustainable FERC Project.
The following is a statement from Clara Summers, manager of CUB’s Consumers for a Better Grid campaign:
We commend the Federal Energy Regulatory Commission (FERC) for rejecting this anti-consumer proposal by PJM and the Transmission Owners, which would have given large corporations with a profit motive far too much power and secrecy in transmission planning. PJM’s Consolidated Transmission Owners Agreement (CTOA) would have threatened efficient, thoughtful regional transmission planning and further shielded the process from scrutiny. It would have served to enrich transmission owners much more than the public interest. We’re glad FERC saw through PJM and the Transmission Owners’ power grab. (PDF version of this statement.)
Background:
- On Friday, Dec. 6, FERC rejected a plan proposed by power grid operator PJM Interconnection to give transmission owners more control over PJM’s transmission planning process.
- Back in June, PJM asked FERC to approve the deal, which it had secretly negotiated with transmission owners. It was called the Consolidated Transmission Owners Agreement, or CTOA.
- PJM is the nation’s largest power grid operator–managing the flow of electricity over northern Illinois and all or parts of a dozen other states. Transmission owners are wealthy and powerful energy companies–like Exelon, the parent of utility ComEd–that own the big, high voltage lines that crisscross the nation.
- CUB opposed the CTOA because…
- It would have allowed transmission owners to override more efficient regional projects, and instead build many smaller “supplemental” projects that are more lucrative for transmission companies and expensive to consumers.
- It included extra giveaways to the transmission owners to shield them and PJM from scrutiny and make it extra hard to challenge them.
- It would have undermined FERC Order 1920, an order that calls for thoughtful transmission planning.
- On July 22, CUB filed a protest at FERC against the CTOA. The consumer group received legal representation from Earthjustice, and were joined by the Delaware Division of the Public Advocate, Office of the People’s Counsel for the District of Columbia, Natural Resources Defense Council, Sierra Club, and the Sustainable FERC Project.
