We've been watching FirstEnergy's FERC Section 205 filing to recover stranded costs due to abandonment of the Prexy portion of TrAIL for the past week. Yesterday, both Exelon and the Maryland PSC petitioned to intervene on behalf of their ratepayers.
FirstEnergy/Allegheny must prove that the abandonment was outside their control and all recovered expenses must be prudently incurred. Ut-oh, looks like Exelon and the MD-PSC have other ideas! Here's a link to the filing. It's a huge, mega-file and takes a while to load, so don't get impatient. It's worth the wait. Apparently Allegheny didn't treat the landowners and opposition any better during the TrAIL case than they have treated us during the PATH case. The Pennsylvania PUC turned down their application for this portion of the line.
Anyhow, TrAILCo is asking for around $13M in project management & permitting costs, ROW property purchase costs, ROW options & damage release costs, construction engineering, pre-construction and legal costs for the Prexy facilities. If approved, this regulatory asset will be amortized over 49 years, to be paid by all PJM region electric customers. Fortunately, it appears that they had to try to mitigate the costs by using some of the capitalized assets in other parts of TrAIL, and selling the property purchased for ROW purposes. The Pennsylvania authorities forced them to give back all the ROW they had wrestled from landowners along the length of the line. However, us ratepayers get to pick up TrAILCo's cost for what appears to have been a big-time swindle of Pennsylvania landowners. TrAILCo attempted to utilize unused ROW purchased for a project years and years ago that was never built. PATH landowners should take notice... if you have signed a ROW agreement with PATH, don't be surprised if 50 years down the road some power company shows up on your property and tells you they have a ROW for a huge, new project.
Just in case you're interested in having a little fun poking TrAILCo with a stick, here's the info. about intervening in the FERC case. You have until April 1. Why not file just before the deadline and give FirstEnergy a little April fool's thrill?
Docket Numbers: ER11-3064-000
Applicants: PJM Interconnection, L.L.C.
Description: PJM Interconnection, L.L.C. submits tariff filing per 35.13(a)(2)(iii: Trans-Allegheny Interstate Line Co’s revisions to Attach H-18A of the PJM Tariff to be effective 6/1/2011.
Filed Date: 03/11/2011
Accession Number: 20110311-5131
Comment Date: 5:00 pm Eastern Time on Friday, April 01, 2011