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DC Circ. Upholds FERC’s Grid Project Cost Orders

by scceu0471

Law360 (December 23, 2019, 1:08 PM EST) — The D.C. Circuit said the Federal Energy Regulatory Commission did not overstep its authority when it handed down orders excluding non-Virginia consumers from the costs of burying three transmission projects underground, rejecting objections raised by Virginia power wholesalers.

A unanimous panel on Friday upheld FERC’s decision to let North Carolina wholesale customers off the hook for the projects’ costs because it was customers in Virginia who would benefit. The judges agreed with FERC that the situation was a “limited exception” to the general rule “that all of a utility’s customers should share the costs of upgrading the grid.”

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