It's been sort of blissful around here in the world of transmission for the past decade. PATH was scrapped, and aside from the stunningly bad market efficiency project proposed by AEP in southern Pennsylvania, we haven't been bothered by big, new transmission in the FirstEnergy Allegheny Power zone (Potomac Edison and West Penn Power, but may also include some assets owned by the company in Virginia).
MEOW! Say hello to FirstEnergy's KATCo. Bad kitty!
MEOW! Say hello to FirstEnergy's KATCo. Bad kitty!
FirstEnergy has formed a new affiliate by the name of Keystone Appalachian Transmission Co., or KATCo. KATCo is intended to own all FirstEnergy's transmission assets in its Potomac Edison and West Penn Power service territory. It will also come in handy for any new projects FirstEnergy wants to build. What projects, you ask? Well, they aren't saying... for now.
FirstEnergy has filed for a new formula rate for its Bad Kitty at the Federal Energy Regulatory Commission. We can pretend that it's just a convenient way to recover KATCo's transmission rates in real time, but we all know it's a way to increase FirstEnergy's transmission rates that we all pay.
Bad Kitty has asked for an 11.35% return on equity, which includes an extra .5% for its membership in regional transmission cartel PJM Interconnection. Were we paying 11.35% before? I don't know for sure, but I highly doubt it. FirstEnergy doesn't do anything if there's not additional profit in it for themselves.
So, what's in Bad Kitty's new formula rate? Pretty much the usual stuff that's in most formula rates, including recovery of "safety advertising." Just "safety." Did that sword hurt when you fell on it, FirstEnergy?
I also got a snicker out of Bad Kitty's definition of "interested party." "[I]nclude but are not limited to..."? So, essentially, that means anyone with standing... and we know who has standing, don't we?
Looks like consumer advocates from affected states have intervened. Hopefully they can knock that ROE down a bit.... especially now that FERC is under new leadership.
It remains to be seen how much transmission it will take to feed Bad Kitty, and when Bad Kitty will feel the need to build new transmission to feed its insatiable hunger for profits.
Ya know, whoever names these awful shell companies and projects at FirstEnergy probably needs to retire. I'm still waiting for the one named "CASH Co." or "YRWALLET Service Co.". Building and owning transmission is just about as profitable as ever. Get your fly swatter and squirt gun ready...
FirstEnergy has filed for a new formula rate for its Bad Kitty at the Federal Energy Regulatory Commission. We can pretend that it's just a convenient way to recover KATCo's transmission rates in real time, but we all know it's a way to increase FirstEnergy's transmission rates that we all pay.
Bad Kitty has asked for an 11.35% return on equity, which includes an extra .5% for its membership in regional transmission cartel PJM Interconnection. Were we paying 11.35% before? I don't know for sure, but I highly doubt it. FirstEnergy doesn't do anything if there's not additional profit in it for themselves.
So, what's in Bad Kitty's new formula rate? Pretty much the usual stuff that's in most formula rates, including recovery of "safety advertising." Just "safety." Did that sword hurt when you fell on it, FirstEnergy?
I also got a snicker out of Bad Kitty's definition of "interested party." "[I]nclude but are not limited to..."? So, essentially, that means anyone with standing... and we know who has standing, don't we?
Looks like consumer advocates from affected states have intervened. Hopefully they can knock that ROE down a bit.... especially now that FERC is under new leadership.
It remains to be seen how much transmission it will take to feed Bad Kitty, and when Bad Kitty will feel the need to build new transmission to feed its insatiable hunger for profits.
Ya know, whoever names these awful shell companies and projects at FirstEnergy probably needs to retire. I'm still waiting for the one named "CASH Co." or "YRWALLET Service Co.". Building and owning transmission is just about as profitable as ever. Get your fly swatter and squirt gun ready...
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