Dive Brief:

• The 11.14% return utilities in New England are allowed for building new transmission will be reduced by 5% to 10.97%, cutting annual charges to the region’s ratepayers over $50 million, if the preliminary decision by the Federal Energy Regulatory Commission is finalized.
• Massachusetts Attorney General and ratepayer advocate Martha Coakley originally asked FERC in 2011 to lower the return, which she called “excessive,” to 9.2%, a savings to customers of over 9%, representing $115 million.
• Coakley’s office reported she is considering ways she to push FERC toward the original 9.2% return reduction proposal.

Dive Insight:

All costs plus a reasonable return is allowed regulated utilities for building new infrastructure and that is recovered through ratepayer bill charges which must be approved by state and federal regulators.

The Edison Electric Institute, a utility advocacy organization, has said FERC should not contradict what local utilities say they need to earn from building new transmission.

Environment Northeast and the Boston-based National Consumer Law Center filed a request in January 2013 proposing an 8.7% reduction of the allowed return to utilities for building new transmission.