FOR IMMEDIATE RELEASE
April 27, 2022
Consumers Say FERC’s Proposed Rule Abandons Electricity Transmission Competition and Supports Monopoly Incumbent Electric Utilities
WASHINGTON, DC – Paul N. Cicio, Chairman of the Electricity Transmission Competition Coalition released the following statement regarding FERC’s April 21, 2022 proposed rule entitled “Building for the Future Through Electric Regional Transmission Planning and Cost Allocation and Generator Interconnection.”
“The Federal Energy Regulatory Commission (FERC) has lost its way – siding with the monopoly power of incumbent electric utilities, and Edison Electric Institute instead of protecting consumer ratepayers.
“It is widely known that it will take trillions of dollars of new transmission investment to decarbonize the electric grid nationwide, the cost of which will be passed onto the consumer. Despite this and knowing that requiring electric transmission projects that are 100 kV or larger to be competitively bid will reduce costs by 20-30 percent, FERC’s proposed rule shields the utility monopoly from competition.
“The FERC ‘Transmission Planning and Cost Management’ Technical Workshop announced for October 6 is not a substitute for head-to-head competition in building-out our transmission grid.
“FERC’s action is inconsistent with President Biden’s comments during the State of the Union address on March 1, 2022 when he stated, ‘Capitalism without competition is exploitation’ and his Executive Order on ‘Promoting Competition in the American Economy.’ In fact, across the country, consumers are being exploited by incumbent electric utilities that have circumvented FERC Order 1000.
“Transmission competition reduces costs to consumers and combats inflation. From 2014 to 2020, RTO/ISO transmission costs increased by $74.9 billion or 79 percent, while electricity demand was flat.¹
“ETCC urges FERC to require that all electricity transmission projects that are 100 kV or larger be competitively bid and to fully implement the intent of FERC Order 1000.”
Click here to read ETCC’s comments in response to FERC’s Advance Notice of Proposed Rulemaking from 2021 regarding regional transmission planning, regional cost allocation, and generation interconnection processes.
About the Electricity Transmission Competition Coalition
The Electricity Transmission Competition Coalition (ETCC) is a broad-based, nation-wide coalition committed to increasing competition in America’s electricity transmission infrastructure. We advocate for common-sense policies and solutions that result in competitively priced transmission projects, which reduce energy costs for all ratepayers – from large manufacturers to residential consumers. The ETCC represents a diverse group of more than 70 companies and organizations from all 50 states, including manufacturing groups, retail electric consumers, state consumer advocates, public power representatives, think tanks, and non-incumbent transmission developers.
For more information, visit: www.electricitytransmissioncompetitioncoalition.org.
¹Electricity, U.S. Energy Information Administration, https://www.eia.gov/electricity/ Nationwide demand in 2014 was 3.76 billion MWh and 2020 was 3.72 billion MWh