The Federal Energy Regulatory Commission (FERC) has approved a joint application from ITCTransmission and Michigan Electric Transmission Co. LLC (METC), subsidiaries of ITC Holdings Corp., made with the Midwest Independent Transmission System Operator to repay generators interconnecting with their systems for the full cost of network upgrades necessary to enable those interconnections.
‘Electric transmission is the backbone of the energy delivery system and plays a critical role in enabling us to make the greater use of renewable and other clean electricity sources,’ says Joseph L. Welch, president and CEO of ITC. ‘FERC's order will remove a significant barrier to entry for new generation, including wind and other renewable resources, and will promote a more competitive energy market to the benefit of customers and generators.’
Previously, generators interconnecting to the ITCTransmission and METC systems were required to bear half the costs of most network upgrades along with other costs of interconnection, the companies say. Under the newly approved policy, generators will be fully reimbursed for the costs of network upgrades necessary to enable their interconnection with the ITCTransmission and METC systems, provided the generators meet certain eligibility requirements.