Resolution urges Congress to challenge FERC's presumption of prudency for transmission costs

The Science, Technology and Energy Committee held a public hearing March 3 on House Resolution 15, a nonbinding statement asking Congress to press the Federal Energy Regulatory Commission (FERC) to require transmission project costs be shown to be just and reasonable before they are shifted to retail ratepayers.

Representative Michael Harrington, the resolution’s sponsor, told the committee the measure asks the state’s congressional delegation to pursue changes at FERC so that the costs of large transmission projects — including lines or substation upgrades — would be reviewed under the same prudency standard used by state regulators. “It's called presumption of prudency,” Harrington said, describing FERC's current practice as treating project costs as presumptively prudent unless objected to.

Harrington said that approach shifts a heavy burden to state ratepayers because there is no single entity whose role is to comb through the tens of thousands of pages of project filings and challenge costs that may be imprudent or unnecessary. He asked that the resolution include a short findings section to explain the problem and make it easier for members of Congress to act.

Committee members asked whether regional bodies or New England organizations have discussed the issue; Harrington said New England utilities and consumer advocates have raised similar concerns and that an interstate effort is underway. No final committee action was taken March 3 on HR 15; Representative McGee offered to draft suggested legislative findings to accompany the resolution.

Ending: The committee closed the public hearing with members signaling support for adding findings and no immediate vote on the resolution.