Publications

    Gavan, John C., and Rob Gramlich. John C. Gavan and Rob Gramlich - A New State-Federal Cooperation Agenda for Regional and Interregional Transmission, 2021. Publisher's VersionAbstract

    Excerpt from the Introduction:

    The experience of grid operators and planners in the United States and around the world has shown that both decarbonization and power system resilience will require large-scale regional and inter-regional trans- mission expansion. In the United States, transmission planning, cost recovery, and siting are all subject to both state and federal jurisdiction. To meet the challenge of expanding transmission to implement decarbonization, the Federal Energy Regulation Commission (FERC) and the National Association of Regulatory Utility Commissioners (NARUC) recently announced the Joint Federal-State Task Force on Electric Transmission to focus on this issue.1 Resolving issues of siting and cost recovery for interstate electric transmission lines will encourage constructive state-federal cooperation. The task force and related regional and national coordination among the states, FERC, the Department of Energy (DOE), and federally regulated transmission providers will be critical to ensuring a resilient and clean power system.

    Brown, Ashley, and Susan Kaplan. “Retail and Wholesale Transmission Pricing: A Troublesome Divergence.” In, 1999.Abstract

    The difference between the pricing of transmission services for retail customers and the
    pricing for wholesale customers could hardly be more striking.. Retail customers still pay
    for transmission in exactly the same way that they have done for generations, namely through bundled retail rates. There are no unbundled retail transmission tariffs as such. Rates are based on the classic, time-honored methodology of cost of service regulation, namely capital investment minus depreciation times rate of return, plus expenses. The rate is then adjusted to account for customer class differences.

    With one or two possible exceptions related to future transmission services, wholesale
    customers generally pay, or at least have the option to choose to pay, an unbundled,
    transmission-specific rate and then choose their supplier from the marketplace. The
    transmission price will at least reflect the discrete costs of providing transmission-specific
    services or, depending on the pricing system employed in the locality the service is being
    rendered, may well be reflective of all costs actually being incurred on the system, including
    congestion costs. In short, transmission-specific price signals are, with a few possible
    exceptions, given solely to wholesale customers. They are not conveyed to retail customers
    either directly or indirectly.