Building transmission lines from remote, renewable-energy-rich areas may have become simpler in late February after the Federal Energy Regulatory Commission ruled that a transmission company may negotiate capacity rights on two proposed lines with a single buyer. Before the decision, FERC required power transmission companies to offer the entire capacity at the same price and for the same length of time in an open-bidding period called “open season.”
In its decision, FERC admitted the open-season rule has become “unduly rigid and inflexible,” and is not conducive to developing renewable transmission projects. FERC will evaluate similar applications on a case-by-case basis.