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.
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