7th Circuit Affirms Socializing Costs of Multi-Value Electric Transmission Projects

A recent advisory from DWT partner Glenn Benson: On June 7, 2013, the U.S. Court of Appeals for the 7th Circuit issued a decision in Illinois Commerce Commission, et al. v. Federal Energy Regulatory Commission, affirming Federal Energy Regulatory Commission (“FERC”) orders that conditionally approved proposed tariff sheets filed by the Midcontinent Independent Transmission System Operator (“MISO”) under which the costs of so-called “Multi-Value Projects” (“MVP”) will be allocated on a load ratio basis to all wholesale purchasers of energy moving over any portion of the MISO grid. The case is the sequel to an earlier case, Illinois Commerce Commission v. FERC, 576 F.3d 470 (7th Cir. 2009), in which the 7th Circuit rejected and remanded FERC orders under which PJM Interconnection, LLC (“PJM”) would have socialized the costs of all electric transmission facilities of 500 kV or more on a pro rata basis among all utilities in the PJM region. Read More