FERC recently issued Opinion 554-A related to the Path (Potomac-Appalachian Transmission Highline, LLC) transmission project, which was cancelled by PJM in 2011. The PATH Project was to be a 275-mile 765 kV line from Amos Substation in West Virginia through Virginia to a new Kemptown Substation in Maryland. In Opinion 554, FERC had found that PATH’s base ROE should be reduced from 10.4% to 8.11% to reflect reduced risks (FERC found that, in the abandonment phase of the PATH Project, PATH's risk profile had decreased significantly as compared to the proxy group companies that face ongoing business risks). Additionally, FERC disallowed certain civic, political and related costs from recovery. PATH requested rehearing of Opinion 554. FERC granted rehearing for the following items:
Dr. Paul Dumais
CEO of Dumais Consulting with expertise in FERC regulatory matters, including transmission formula rates.