United States: DOE and FERC Seek Advice Regarding Congested Transmission Corridors of National Interest

Section 1221 of the Energy Policy Act of 2005 provides for adoption of procedures designed to facilitate expansion of the national electric transmission grid where needed to relieve congestion. Pursuant to that section, the Secretary of the Department of Energy (DOE) is responsible for designating any geographic area experiencing electric energy transmission capacity constraints or congestion that adversely affects consumers as a "national interest electric transmission corridor."

The Federal Energy Regulatory Commission (FERC) is then authorized to issue permits for construction or modification of transmission lines within such national interest electric transmission corridors if state regulatory authorities either lack the ability to issue such permits or fail to do so within one year after applications have been submitted.

Earlier this week, the DOE issued a National Electric Transmission Congestion Study, in which it has identified two "Critical Congestion Areas" as the Atlantic coastal area, from metropolitan New York through Northern Virginia, and Southern California.

The study also identifies New England, the Phoenix-Tucson area, the Seattle-Portland area, and the San Francisco Bay Area as "Congestion Areas of Concern."

Certain "Conditional Congestion Areas," which are expected to be impacted by construction of new generating facilities were also identified as Montana-Wyoming (wind); Dakotas-Minnesota (wind); Kansas-Oklahoma (wind); Illinois, Indiana, and Upper Appalachia (coal); and the Southeastern United States (nuclear).

The DOE has asked for comments concerning designation of national interest electric transmission corridors to be submitted by October 10, 2006.

Such comments should address both the criteria to be used by the DOE in designating such corridors and the propriety of designating the Critical Congestion Areas, the Congestion Areas of Concern, and/or the Conditional Congestion Areas as national interest electric transmission corridors.

Click on the following link to read the DOE's Executive Summary and the Request for Comments from the study.

In June 2006, the FERC issued a Notice of Proposed Rulemaking (NOPR) regarding Regulations for "Filing Applications for Permits to Site Interstate Electric Transmission Corridors." Those regulations, when final, will:

• Provide for adoption of a Project Participation Plan and establishment of an extensive pre-filing process in order to facilitate maximum participation by all interested persons;

• Prescribe filing requirements applicable to requests for permits to build or modify transmission facilities; and

• Identify conditions that will be applicable to all such permits.

Comments on this NOPR are due to be filed at the FERC by August 25, 2006.

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