Officials at Maine Public Service Co. (MPS), a subsidiary of Maine & Maritimes Corp., and Central Maine Power Co. (CMP) have submitted a joint petition to the Federal Energy Regulatory Commission (FERC) requesting authorization for transmission rate incentives in connection with the Maine Power Connection Project (MPC Project). The MPC Project, with an estimated cost of $625 million, consists of a proposed 200-mile, 345 kV transmission line and the construction of new and upgraded substations.
The request for rate incentives was made pursuant to the Federal Power Act, Section 219 and FERC Order No. 679, which allow incentive rates to promote investment in transmission projects providing significant competition, market enhancement and reliability benefits. MPS and CMP requested that FERC issue a decision by Sept. 18.
Pending federal and state approvals, the companies expect project construction to begin in June 2009. In the filing, MPS and CMP requested formula rate-based incentives to recover revenue requirements for the MPC Project, including an additional return on equity (ROE) of 150 basis points above each company's base ROE and recovery of prudently incurred costs if the MPC Project is abandoned.
SOURCE: Maine Public Service Co.