It's April.  FirstEnergy got fooled!

Remember the TrAILCo request to FERC for recovery of costs of the abandoned Prexy facilities portion of their project?

Today was the deadline to intervene in that case.  Let's check to see how our team line-up panned out.

We already know that Exelon and the Maryland PSC have intervened.  Since then, the opposing team has added American Municipal Power, PSEG, Mid American Energy Holdings and, just before the deadline, Dominion.

Couple of humorous musings on the "team", in honor of this day...

American Municipal Power was one of the intervenors in PATH's FERC incentive filing back in 2008.  They objected rather vigorously to just about everything PATH was asking for, and they did some great work on PATH's Formula Rate Protocols that eventually made our work on the Challenge easier.  I'm thinking they really don't like the former Allegheny Energy very much.

Dominion is FirstEnergy's "partner" on TrAIL.  However, it is a vastly different kind of partnership than AEP & Allegheny entered into on PATH.  The project construction and finances were never mixed, and the TrAILCo shell company belonged solely to Allegheny.  The Dominion guys called it a "meet-up" project.  Dominion constructed their portion, and Allegheny constructed their portion, separately.  Dominion doesn't hold any stake in this cost recovery.  And I got the distinct impression from the Dominion guys after talking with them on several occasions that Allegheny wasn't one of their favorite friends.

Also, Exelon filed this comment on the docket today.  Gosh, it's a real breath of fresh air to see a power company attorney who isn't a dunce -- Exelon's counsel makes a great point!  The problem is that PJM has removed the existing cost allocation for the Prexy facilities from their most recent update.  Exelon wants to know who is supposed to be paying for the recovered costs, if granted.  Postage stamp rates only apply to facilities 500kV or above.  Only a portion of the proposed Prexy facilities was a 500kV line; it also included other 138kV lines and substations.  TrAILCo can't be thinking that they can foist all of this off onto all the PJM ratepayers, can they?  Exelon also brings up the 7th Circuit remand to FERC.  Until the Commission makes a decision on that, Exelon wants the decision on TrAILCo delayed.  Makes perfect sense to me, since the 7th circuit decision called into question PJM's postage stamp cost allocation that will apply to the portion of Prexy that was at 500kV.

FirstEnergy really should have checked the Allegheny Energy horse's teeth before buying...
 


Comments




Leave a Reply