56-579 - Regional transmission entities.
§ 56-579. Regional transmission entities.
A. As set forth in § 56-577, each incumbent electric utility owning,operating, controlling, or having an entitlement to transmission capacityshall join or establish a regional transmission entity, which hereafter maybe referred to as "RTE," to which such utility shall transfer themanagement and control of its transmission assets, subject to the following:
1. No such incumbent electric utility shall transfer to any person anyownership or control of, or any responsibility to operate, any portion of anytransmission system located in the Commonwealth prior to July 1, 2004, andwithout obtaining, following notice and hearing, the prior approval of theCommission, as hereinafter provided. However, each incumbent electric utilityshall file an application for approval pursuant to this section by July 1,2003, and shall transfer management and control of its transmission assets toa regional transmission entity by January 1, 2005, subject to Commissionapproval as provided in this section.
2. The Commission shall develop rules and regulations under which any suchincumbent electric utility owning, operating, controlling, or having anentitlement to transmission capacity within the Commonwealth, may transferall or part of such control, ownership or responsibility to an RTE, upon suchterms and conditions that the Commission determines will:
a. Promote:
(1) Practices for the reliable planning, operating, maintaining, andupgrading of the transmission systems and any necessary additions thereto; and
(2) Policies for the pricing and access for service over such systems thatare safe, reliable, efficient, not unduly discriminatory and consistent withthe orderly development of competition in the Commonwealth;
b. Be consistent with lawful requirements of the Federal Energy RegulatoryCommission;
c. Be effectuated on terms that fairly compensate the transferor;
d. Generally promote the public interest, and are consistent with (i)ensuring that consumers' needs for economic and reliable transmission are metand (ii) meeting the transmission needs of electric generation suppliers bothwithin and without this Commonwealth, including those that do not own,operate, control or have an entitlement to transmission capacity.
B. The Commission shall also adopt rules and regulations, with appropriatepublic input, establishing elements of regional transmission entitystructures essential to the public interest, which elements shall be appliedby the Commission in determining whether to authorize transfer of ownershipor control from an incumbent electric utility to a regional transmissionentity.
C. The Commission shall, to the fullest extent permitted under federal law,participate in any and all proceedings concerning regional transmissionentities furnishing transmission services within the Commonwealth, before theFederal Energy Regulatory Commission. Such participation may include suchintervention as is permitted state utility regulators under Federal EnergyRegulatory Commission rules and procedures.
D. Nothing in this section shall be deemed to abrogate or modify:
1. The Commission's authority over transmission line or facilityconstruction, enlargement or acquisition within this Commonwealth, as setforth in Chapter 10.1 (§ 56-265.1 et seq.) of this title;
2. The laws of this Commonwealth concerning the exercise of the right ofeminent domain by a public service corporation pursuant to the provisions ofArticle 5 (§ 56-257 et seq.) of Chapter 10 of this title; or
3. The Commission's authority over retail electric energy sold to retailcustomers within the Commonwealth by licensed suppliers of electric service,including necessary reserve requirements, all as specified in § 56-587.
E. For purposes of this section, transmission capacity shall not includecapacity that is primarily operated in a distribution function, as determinedby the Commission, taking into consideration any binding federal precedents.
F. Any request to the Commission for approval of such transfer of ownershipor control of or responsibility for transmission facilities shall include astudy of the comparative costs and benefits thereof, which study shallanalyze the economic effects of the transfer on consumers, including theeffects of transmission congestion costs. The Commission may approve such atransfer if it finds, after notice and hearing, that the transfer satisfiesthe conditions contained in this section.
G. The Commission shall report annually to the Commission on Electric UtilityRegulation its assessment of the practices and policies of the RTE. Suchreport shall set forth actions taken by the Commission regarding requests forthe approval of any transfer of ownership or control of transmissionfacilities to an RTE, including a description of the economic effects of suchproposed transfers on consumers.
(1999, c. 411; 2001, c. 576; 2003, cc. 885, 990; 2007, cc. 888, 933; 2008, c.883.)