FERC Auditing TrAIL Rate Payer Charges

Keryn and Ali have done it!  They have turned up so much dirt that AEP and FirstEnergy were trying to get away with that FERC decided to take a look at FirstEnergy’s TrAIL charges to rate payers.

FirstEnergy attorney Randy Palmer is not starting off the New Year on a very good note.  Here’s the beginning of the letter he got from FERC’s Office of Enforcement dated January 3:

Trans-Allegheny Interstate Line Company
Attention: Randall B. Palmer
Senior General Counsel
FirstEnergy Corp.
800 Cabin Hill Dr.
Greensburg, PA 15601

Dear Mr. Palmer:

The Division of Audits in the Office of Enforcement (OE) of the Federal Energy Regulatory Commission (Commission) is commencing an audit of Trans-Allegheny Interstate Line Company (TrAILCo). The audit will evaluate whether TrAILCo has complied with the conditions and requirements upon which the Commission approved its incentive rate treatments.1 The audit will also evaluate TrAILCo’s compliance with: FERC-730 reporting regulations under 18 C.F.R. Part 35 (2011); its transmission cost of service formula rate schedule included in Attachment H-18 to the Open Access Transmission Tariff (OATT) of PJM Interconnection, L.L.C.; various accounts incorporated into its cost of service formula rate; and accounting regulations in the Uniform System of Accounts for public utilities under 18 C.F.R. Part 101 (2011). The audit will cover the period from July 20, 2006 through December 31, 2011.

So all rate payers in PJM owe a big thank you to Keryn and Ali, not only for their great work exposing AEP/FE’s PATH overcharges, but for lighting a fire under FERC to go after FirstEnergy’s TrAIL overcharges as well.

One thought on “FERC Auditing TrAIL Rate Payer Charges

  1. From the Formal Challenge to PATH’s 2009 ATRR (January 21, 2011)

    “In fact, we now suspect that if this same process were to be embarked upon
    concerning TrAILCo.’s Formula Rate, substantially similar errors and imprudent expenditures would quickly make themselves evident. We would urge the Commission to require a thorough review of all of Allegheny Energy’s rate recovery processes, as the party in common on both projects.”

    But embarrassing FERC by recovering merger costs after FERC assured everyone that their processes were sufficient to prevent it was probably the straw that broke the camel’s back, eh?


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