Analysis of Speed and Cost Outcomes in Competitive U.S. Transmission Development
By
by Kent Chandler, Olivia Manzagol
Toasted golden, schmeared with insight. Top of the rack.
Summary
This article analyzes the impact of competitive transmission solicitations in the U.S. energy sector, following FERC's decision over a decade ago to eliminate incumbent utilities' right of first refusal (ROFR) for building regional transmission lines. The R Street Institute examines speed-to-market and cost outcomes of competitive transmission projects compared to traditional monopoly-led development, assessing whether competitive processes have delivered faster project completion and lower costs for consumers.
Key quotes
· 3 pulledOver a decade ago, federal regulators overhauled the way transmission planning is conducted in the United States.
As part of those changes, the Federal Energy Regulatory Commission (FERC) determined it would no longer allow incumbent utilities to possess a right of first refusal (ROFR) to build all transmission traversing their state-determined service territories.
Instead, certain significant regional transmission lines would be subject to competitive solicitations in which both incumbent and non-incumbent developers could submit proposals for inclusion
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