Allegheny Energy noted that all active parties to the proceeding either support or do not oppose the settlement agreement.
The settlement agreement, which requires Federal Energy Regulatory Commission (FERC) approval and will resolve all issues previously set for hearing, includes an incentive return on equity rate of 12.7% for the Trans-Allegheny interstate line (Trail) project.
The agreement also includes an incentive return on equity rate of 12.7% for the static compensator installed at the existing Black Oak substation and a return on equity rate of 11.7% for any other projects Trans-Allegheny Interstate Line Company (Trailco) may undertake, for which no incentive return on equity has been requested.
Incentive rate treatment is intended to encourage new investment in electric transmission projects that will improve the reliability of electric service. PJM, the regional grid operator, warned that without Trail, the stability of the grid and reliable flow of electricity within the region cannot be reasonably assured.
