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Power & Pipes

FERC, CFTC, and State Energy Law Developments

On May 21, 2009, the Federal Energy Regulatory Commission (FERC) approved a participant funding arrangement for a proposed international transmission project that would connect the Hydro-Quebec TransEnergie (Hydro-Quebec) transmission system with the ISO New England transmission system. The project is designed to allow the importation of hydropower from Canada into the United States for the purpose of serving customers in the New England region.

Northeast Utilities Service Company (Northeast), NSTAR Electric Company (NSTAR), and Hydro-Quebec are presently collaborating on the design and construction of a 1,200-megawatt transmission line that would connect Hydro-Quebec to ISO New England’s 345 kV transmission system. As proposed, Hydro-Quebec will fund construction of the project and will assume responsibility for the project’s risks. In return for its commitment, Hydro-Quebec will receive 1,200 megawatts of capacity on the completed transmission line for the transmission of hydropower into the United States. Under such a proposal, the costs of the project will not be recovered through the rates for transmission service under the ISO New England’s tariff.  Read more…