ELR Citation: 44 ELR 20137
No(s). 13-1674 et al (7th Cir. Jun 25, 2014)

The Seventh Circuit, for the second time, vacated a FERC order that allocates costs for certain new high-voltage network transmission lines in the Mid-Atlantic and Midwest. The order allocates the costs of the lines across all the utilities in proportion to each utility’s respective sales. But the lines at issue are all located in the eastern region of the grid. In addition, although there will be some benefits to the western utilities in the grid, it is unlikely that much electricity will be transmitted form the eastern to the western utilities via the new transmission lines because the demand for electricity is greater in the eastern region. FERC, therefore, failed to justify why a grossly disproportionate share of the costs should be shifted to the western utilities. The court, therefore, remanded the order to FERC.