Federal regulators on Thursday suggested tightening up an electric transmission incentives policy designed to stimulate infrastructure development for the nation’s evolving grid.

FERC

In its regular meeting, FERC approved by a vote of 3-2 a revision to the plan issued in March 2020 (No. RM20-10). In the supplemental Notice of Proposed Rulemaking (NOPR), the Commission suggested codifying the current practice. It would grant an increase of 50 basis points (bp) in return on equity as an incentive for utilities that join a transmission organization. 

The NOPR last year suggested boosting the incentives to 100 bp from 50 for membership in a Regional Transmission Organization (RTO), an Independent System Operator or other FERC-approved transmission organization. 

“An incentive must...