FERC delays Nov plan to end special power grid fee

WASHINGTON -- The Federal Energy Regulatory Commission postponed the Nov. 1 deadline for transmission grids in the Midwest and mid-Atlantic regions to end a fee charged to move power across their regions.

The so-called "through and out" rates charged by PJM Interconnection LLC and the Midwest Independent Transmission System Operator, which generate some $250 million annually, were struck down by FERC in July as unfair and a barrier to competition. At that time, the commission set a Nov. 1 deadline for both grids to drop the fees. But in an order recently FERC said aid it would delay the deadline and set a new date "in the near future." FERC said it took the action because it is also investigating similar fees charged by American Electric Power Co. , Ameren Corp. , Exelon Corp's Commonwealth Edison, FirstEnergy Corp. , DPL Inc's Dayton Power and Light , and Dynegy Inc.'s Illinois Power Co.

The agency ordered the utilities in July to prove that their through and out fees are just and reasonable.

PJM, which serves much of the mid-Atlantic and Northeast, and the Midwest ISO charge the fee to move electricity across large distances on their wires.

Some utilities contend that the fee is unfair and hinders competition. The Midwest and PJM grid case is pending before FERC and the investigation of AEP and other utilities is pending.

Reuters