• 5 minutes Rage Without Proof: Maduro Accuses U.S. Official Of Plotting Venezuela Invasion
  • 11 minutes IEA Sees Global Oil Supply Tightening More Quickly In 2019
  • 14 minutes Paris Is Burning Over Climate Change Taxes -- Is America Next?
  • 21 mins Waste-to-Energy Chugging Along
  • 8 hours U.S. Senate Advances Resolution To End Military Support For Saudis In Yemen
  • 8 hours Contradictory: Euro Zone Takes Step To Deeper Integration, Key Issues Unresolved
  • 4 hours Venezuela continues to sink in misery
  • 3 hours Let's Just Block the Sun, Shall We?
  • 5 hours What will the future hold for nations dependent on high oil prices.
  • 19 hours Regular Gas dropped to $2.21 per gallon today
  • 18 hours Zohr Giant Gas Field Increases Production Six-Fold
  • 17 hours No, The U.S. Is Not A Net Exporter Of Crude Oil
  • 1 day Air-to-Fuels Energy and Cost Calculation
  • 13 hours UK Power and loss of power stations
  • 1 day $867 billion farm bill passed
  • 13 hours EPA To Roll Back Carbon Rule On New Coal Plants
  • 18 hours Global Economy-Bad Days Are coming
Canadian Crude Price Spike Won’t Last

Canadian Crude Price Spike Won’t Last

The price spike in Canadian…

Supreme Court Declines to Hear FERC Case

The U.S. Supreme Court declined to hear a case that challenged a pricing formula for long distance transmission lines. The decision leaves in place a ruling from a lower court allowing the pricing formula to stand. While flying below the radar, the issue has broad implications for the renewable energy industry.

At issue is how long distance transmission lines are paid for. The U.S. Federal Energy Regulatory Commission (FERC) – the body regulates transmission lines that cross state borders – approved a pricing formula proposed by the Midwest Independent System Operator (MISO), the electricity grid operator in the Midwest. MISO’s proposal was intended to figure out a way to cover the cost of bringing wind power from states in the Great Plains to urban centers in the Midwest, which would require the construction of high voltage transmission lines across several states. MISO proposed spreading the cost of the power lines across all utilities in its service area, with utilities picking up a share of the cost proportional to how much power they use. FERC approved the proposal.

Related Article: U.S. Army’s $7 Billion Interest in Renewable Energy

Michigan and Illinois sued to stop it in court, arguing that only the beneficiaries of the wind power should pay, not the entire region. MISO argued, and FERC agreed, that the entire region would in fact benefit by building access to cheaper electricity, more than offsetting the cost of the power lines. This would bring benefits to the entire region, not just the direct customers of the wind power.

The Supreme Court’s decision not to take up the case allows this pricing model to move forward. It is a win for the renewable energy industry, which is trying to figure out ways to connect wind-rich areas in remote places of the Great Plains to population centers.

By Joao Peixe of Oilprice.com



Join the discussion | Back to homepage

Leave a comment

Leave a comment

Oilprice - The No. 1 Source for Oil & Energy News