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?
- How can transmission pricing be used to reduce the likelihood of anti-competitive behavior by those entities owning both generation and trasmission.