Selection of methods for evaluating the cost of transmission wheeling services
- New York State Dept. of Public Service, Albany, NY (United States)
Wheeling has been defined as the use of a utility`s transmission facilities to transmit power for other buyers and sellers. On October 26, 1994, the Federal Energy Regulatory Commission (FERC) announced a POLICY STATEMENT, concerning the Commission`s Pricing transmission services. It follows a Pricing inquiry conducted by FERC in 1993, and an analysis of the 165 responses FERC had received to that inquiry including one from the Department with which this author is associated. The single most important new element introduced in FERC`s Policy Statement of October 26, is flexibility in methodologies which are allowed for determining costs and, thus, prices for transmission services. FERC stated that the respondents to the Pricing Inquiry of 1993 almost unanimously requested that the Commission allow such flexibility. The Policy Statement may lead to experimentation on the part of users of transmission systems, to determine the magnitude of costs predicted by various cost of wheeling methodologies. It is the objective of this paper to outline the steps which New York State has taken and started over five years ago, in executing an investigation of wheeling costs which are generated by a number of cost of wheeling methodologies; documents which are available will be indicated, which should help other investigators in the execution of a similar study. A summary of FERC`s Policy Statement dated October 26, 1994 appears in the Appendix.
- OSTI ID:
- 94236
- Report Number(s):
- CONF-950414--
- Country of Publication:
- United States
- Language:
- English
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