FERC moved its electric power transmission policy into newterritory last week with the approval of DTE Energy’s spin-offtransmission system, International Transmission Co. (ITC), as anindependent transco with rates similar to those of a regionaltransmission organization (RTO). (ER00-3295)

The order depends on DTE’s completing the spin-off and ITCjoining an RTO. Three commissioners approved the innovative plan asnecessary to help the company attract the badly-needed capital todevelop the system. The fourth, Commissioner William Massey,dissented, saying it undermined FERC’s Order 2000 policy favoringRTOs and would contribute to pancaked rates.

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

©Copyright 2000 Intelligence Press Inc. All rights reserved. Thepreceding news report may not be republished or redistributed, inwhole or in part, in any form, without prior written consent ofIntelligence Press, Inc.