New England TOs Ask FERC for a Major Return on Equity Increase

The New England transmission owners have asked FERC to increase their base return on equity from 9.57% to 11.39%, a proposal that already has drawn strong opposition from consumer groups.

The proposal follows FERC Opinion 594, issued by the commission in March, which set the 9.57% ROE with a 2014 effective date. The companies previously had been collecting 10.57% (EL11-66, et al.). (See FERC Cuts ‘Ping-ponging’ ROE for New England Transmission Owners.)

Joe LaRusso, senior advocate at the Acadia Center, said the companies’ request “reflects that they’re again seeking to maximize their revenues.” He emphasized the need for scrutiny of the TOs’ claims that they relied on the exact same methodology as FERC used in Opinion 594.

“If we don’t get this right, it’s going to end up costing the region’s ratepayers a significant sum of money,” he said.

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