Wellinghoff Testifies Before House Subcommittee on Transmission Policy
On June 12, 2009, the Subcommittee on Energy and Environment (“Energy Subcommittee”) held a hearing titled “The Future of the Grid: Proposals for Reforming National Transmission Policy.” Among those that testified at the hearing was FERC Chairman Jon Wellinghoff. The hearing addressed proposals for new legislation on transmission planning, cost allocation, and siting authority.
Chairman Wellinghoff testified that state and regional authorities need to continue to maintain siting authority over the development of grid expansion, while allowing FERC the authority to intervene in the process under appropriate circumstances. Chairman Wellinghoff believes that this authority could be limited to instances where facilities are needed to meet renewable energy goals and where states have first addressed the issue. Chairman Wellinghoff believes that this “backstop authority” is needed for the nation to continue to develop its renewable energy sources.
In addition to siting authority, Chairman Wellinghoff testified on cost allocation measures. He advocated for broad language that would allow FERC the flexibility to address cost allocation on a case-by-case basis. Chairman Wellinghoff cautioned that more restrictive cost allocation measures that would force an entity to bear all developing costs could prevent transmission for renewable energy sources from being developed.
Finally, Chairman Wellinghoff asked for Congressional clarification on FERC’s authority to ensure that state and regional planning is consistent with national goals and allocate transmission costs to all load-serving entities of an interconnection.
Representative Edward Markey, (D-MA), Chairman of the Energy Subcommittee and co-sponsor of H.R. 2454: American Clean Energy and Security Act of 2009, presided over the hearing. Chairman Markey asked if FERC absolutely needed expanded authority for broad cost allocating measures and backstop authority at this time and stated he would instead prefer to fine-tune the transmission provision in the climate change and energy bill that he helped create.
In addition to Chairman Wellinghoff, several other witnesses testified, including various state regulators and utility executives.
As of press time, the Energy Subcommittee’s website had not posted witnesses’ testimony.