Keryn has been steadily reporting on the FERC incentive process that is still continuing for PATH. Keryn and Ali have challenged AEP/FE’s cost recovery figures for the 2009 operating year.
Now, AEP/FE have just posted their initial information for their recovery of 2010 costs and incentives. This information is what is called a “true-up” in FERC/power company jargon. At the beginning of 2010, FERC and PJM allow AEP/FE to begin adding their estimated future costs for 2010 to our electric rates. Then, a year later, AEP/FE file their actual costs and any extra is then added to our rates, or any over collection is rebated to rate payers.
Guess what? AEP/FE were allowed to collect from us $5 million that they never spent. They will have to give that back, along with all the other costs and extra profit FERC makes them disgorge as the result of rate payer challenges like the one Keryn and Ali filed after last year’s true-up.
If you are planning to become a part of a big challenge to AEP/FE’s PATH costs for the 2010 year, you should start with the 2010 true-up filing. Then go over to StopPATH WV and look over Keryn’s excellent tutorial posts on FERC’s arcane process here, here, and here.
Also, don’t forget to file your comments about the FERC incentive process itself. FERC is requesting comments, as I explained earlier, about the whole idea of forcing rate payers to cough up hard earned cash for big new transmission lines. You should read the FERC Notice of Inquiry carefully, and respond only to the issues that FERC is considering. This is an important process. If you’ve been bitching about FERC’s power line incentive program, now is the time to speak your mind.
The comment process is different from the 2010 PATH true-up, so be sure to get up to date on both FERC activities. If you want to keep the PATH zombie in its grave, we need to keep FERC honest, because the incentives drive a lot of these unneeded power line projects.