FERC Approves Independent Transco

FERC moved its electric power transmission policy into new territory last week with the approval of DTE Energy's spin-off transmission system, International Transmission Co. (ITC), as an independent transco with rates similar to those of a regional transmission organization (RTO). (ER00-3295)

The order depends on DTE's completing the spin-off and ITC joining an RTO. Three commissioners approved the innovative plan as necessary to help the company attract the badly-needed capital to develop the system. The fourth, Commissioner William Massey, dissented, saying it undermined FERC's Order 2000 policy favoring RTOs and would contribute to pancaked rates.

As a transco, ITC's rate formula is designed to produce $138 million in annual revenue. The rates were approved subject to refund.

©Copyright 2000 Intelligence Press Inc. All rights reserved. The preceding news report may not be republished or redistributed, in whole or in part, in any form, without prior written consent of Intelligence Press, Inc.