Electricity Today T&D Magazine

In a significant shift, the Federal Energy Regulatory Commission (FERC) has decided to abandon its transmission incentives policy, particularly the construction work in progress (CWIP) incentives. This decision marks a pivotal change in how transmission projects are financed and regulated, potentially impacting stakeholders across the energy sector.

Historically, transmission incentives, including CWIP, were designed to encourage investment in the nation's aging and overburdened transmission infrastructure. By allowing utilities to recover costs during the construction phase,...