- How can transmission pricing be used to reduce the likelihood of anti-competitive behavior by those entities owning both generation and trasmission.
For years, utilities, regulators, and economists have discussed the possibility of opening access to the electric transmission grid. It is now well past the time to cut the Gordian knot in impasse over the debate, and to raise the key strategic question of whether utility owned transmission facilities belong in the ratebase paid for by native-load ratepayers. The question is complex, but requires public discussion and debate as we move inexorably to more competitive bulk power markets. The issue is best approached from three different perspectives:
• Who should bear the risk of residual revenue respon-
sibility for transmission assets?
• Are actual costs and uses reflected in the allocation of responsibilities for transmission revenues?
to electric power transmission lines and pricing for such access. Somewhat surprisingly, since there has
been a common assumption that this is the domain of federal regulators, the author is able to point out
numerous bases for the exercise of jurisdiction by state regulators, by direct grants of authority, or indirectly
in the discharge of other responsibilities and duties.