by GDS Associates, Inc | December 15, 2022 |
The Federal Energy Regulatory Commission’s (“FERC”) new controversial Return on Equity (ROE) methodology has been recently remanded by the D.C. Circuit Court of Appeals. In its August 2022 opinion, the court found that FERC’s rationale for its about-face on the use of the Risk Premium method to be arbitrary and capricious. This article discusses the opportunities for FERC to refine its broader approach to determining just and reasonable ROEs, now that the orders are remanded.
The federal government calls the Bipartisan Infrastructure Law (BIL), a.k.a. Infrastructure Investment and Jobs Act (IIJA), a once-in-a-lifetime investment for a good reason. This 2021 law provides a multi-billion-dollar opportunity for states and utilities, regardless of size, to capture federal funds and use them for investments in grid reliability including efforts to reduce outages related to climate-induced events. CLICK HERE to learn how and why funds will be distributed.