Improving U.S. Transmission Expansion Policy Through Order No. 1000

16 Pages Posted: 31 Aug 2016

Date Written: October 2016

Abstract

This article examines the latest attempt of the United States' regulatory agency, the Federal Energy Regulatory Commission (FERC), to promote transmission expansion through the transmission planning and cost allocation principles contained in its recently issued Order No. 1000. It finds the level of detail contained in the order's cost allocation principles to be insufficient to achieve FERC's goals. It argues that the order does provide important principles for both transmission planning and expansion, though. It thus presents a cost allocation methodology which channels the order's strengths. Specifically, the methodology obtains an estimate of the benefits of a project and aligns the costs and benefits of the project accordingly.

JEL Classification: K23, Q48

Suggested Citation

Benjamin, Richard M., Improving U.S. Transmission Expansion Policy Through Order No. 1000 (October 2016). Contemporary Economic Policy, Vol. 34, Issue 4, pp. 614-629, 2016. Available at SSRN: https://ssrn.com/abstract=2832451 or http://dx.doi.org/10.1111/coep.12158

Richard M. Benjamin (Contact Author)

Round Table Group ( email )

United States
410-672-5319 (Phone)

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