July 22, 2011
Exelon Commends Federal Energy Regulatory Commission’s Final Ruling on Transmission Planning and Cost Allocation
Yesterday, the Federal Energy Regulatory Commission (FERC) finalized its new transmission planning and cost allocation rule, which includes an array of new policies critical to the future development of the nation’s transmission infrastructure.
CHICAGO – Yesterday, the Federal Energy Regulatory Commission (FERC) finalized its new transmission planning and cost allocation rule, which includes an array of new policies critical to the future development of the nation’s transmission infrastructure.
Based on its initial review, Exelon is encouraged by the FERC’s decision to expand planning and cost allocation processes to ensure that the grid can accommodate the new demands that will be placed upon it. In particular, it is critical that planners anticipate and plan for new federal environmental requirements on the power sector. FERC’s cost allocation policies appropriately assign the costs of new transmission lines, including improved reliability, reduced congestion and compliance with federal and state policy objectives, to only those customers that enjoy those benefits. Further, FERC appropriately maintains the ability of transmission providers like ComEd and PECO to construct transmission upgrades in their respective territories to ensure reliability and meet their service obligations. Exelon is committed to working cooperatively with other stakeholders in PJM to ensure that PJM expeditiously submits tariff changes that achieve goals of the final rule.
“Exelon commends FERC for taking this important step towards clarifying the transmission planning and cost allocation rules that govern our nation’s electricity grid as it expands to meet the needs of the 21st century,” said John W. Rowe, Exelon chairman and CEO. “The grid will undergo an important transition as the composition of the generation fleet changes following the implementation of federal clean air rules. FERC’s ruling sets the nation on a course to complete that transition in an orderly fashion.”
Exelon Corporation is one of the nation’s largest electric utilities with more than $18 billion in annual revenues. The company has one of the industry’s largest portfolios of electricity generation capacity, with a nationwide reach and strong positions in the Midwest and Mid-Atlantic. Exelon distributes electricity to approximately 5.4 million customers in northern Illinois and southeastern Pennsylvania and natural gas to approximately 490,000 customers in the Philadelphia area. Exelon is headquartered in Chicago and trades on the NYSE under the ticker EXC.