In FERC Docket No. ER21-424, on November 16, 2020, Michigan Electric Transmission Company, LLC (METC) filed an application for an order authorizing METC to recover up to $15 million in transmission-related infrastructure costs associated with its electric vehicle (EV) charging infrastructure project (Pilot Project) pursuant to the Commission’s 2009 Smart Grid Policy Statement. METC requested that, if the Commission finds that its application does not satisfy the Smart Grid Policy Statement criteria, the Commission alternatively consider its application under FPA section 205 independent of the Smart Grid Policy Statement. METC also requested that the Commission authorize METC to recover 100% of abandoned plant costs if the Pilot Project is abandoned for reasons beyond METC’s control. In April 2021, FERC denied METC’s request as FERC found the request premature because it is unclear whether some or all components of the Pilot Project are subject to the Commission’s transmission-related ratemaking authority under the FPA (will the assets be FERC jurisdictional). FERC provided guidance to METC in its order. It stated that METC could, in a subsequent filing: (1) specify the location of the DCFC stations; (2) confirm whether the AC-to-DC converter will be included in the Pilot Project; (3) demonstrate that METC can legally own the proposed facilities; and (4) demonstrate that its facilities qualify as transmission (by providing either (a) sufficient information for the Commission to evaluate the proposed assets according to the Seven Factor Test, including information such as the configuration and voltage level of the proposed assets, or (b) a recommendation from the Michigan Commission on the classification of the proposed assets that evaluates them according to the Seven Factor Test).
Dr. Paul Dumais
CEO of Dumais Consulting with expertise in FERC regulatory matters, including transmission formula rates, reactive power and more.