Association News

NEMA commends FERC approval of Midwest Transmission proposal.

Press Release Summary:

Dec 21, 2010 - Federal Energy Regulation Commission approved proposal that removes barriers to development of much-needed transmission that will deliver cleaner and cheaper energy to consumers across Midwest. Proposal, offered by Midwest Independent Transmission System Operator Inc. and its stakeholders, is intended to enable region to comply with energy policy mandates and to address reliability and economic issues affecting multiple transmission zones within region.

National Electrical Manufacturers Association (NEMA) - Rosslyn, VA

Original Press Release

NEMA Commends FERC Approval of Midwest Transmission System Proposal

Press release date: Dec 16, 2010

ROSSLYN, Va., - The National Electrical Manufacturers Association (NEMA) commends today's approval by the Federal Energy Regulatory Commission (FERC) of a proposal that removes barriers to the development of much-needed transmission that will help maintain the reliability of the transmission grid and deliver cleaner and cheaper energy to consumers across the Midwest.

The proposal, offered by the Midwest Independent Transmission System Operator Inc. (Midwest ISO) and its stakeholders, is intended to enable the region to comply with energy policy mandates and to address reliability and economic issues affecting multiple transmission zones within the region. This proposal improves Midwest ISO's ability to ensure that the costs of transmission projects with regional benefits are properly assigned to those who benefit.

"Today's regulatory action is a positive development, but the long term solution to increased transmission investment is for Congress to provide for federal eminent domain authority for transmission siting," said NEMA President and CEO Evan R. Gaddis.

Midwest ISO proposes to create a new category of transmission projects, called "multi-value projects" to recognize the regional benefits of qualifying transmission projects for the purpose of cost allocation. Under the proposal, Midwest ISO will review each proposed multi-value project on its own to ensure that it supports a public policy requirement or that it addresses reliability and/or multiple economic issues in multiple transmission zones. Individual multi-value projects then will be aggregated with other similar projects in a portfolio so that benefits of the new projects are conferred across the entire Midwest ISO in a manner that is commensurate with the costs incurred.

"Cost allocation reform is one of the most difficult issues facing transmission service providers and regional market operators," FERC Chairman Jon Wellinghoff said. "This bottom-up proposal was developed to help support the region's electricity needs, and it came to FERC through a 19-month stakeholder process within the Midwest ISO. I commend the hard work of all the stakeholders, and in particular all the state commissioners, in the region."

NEMA is the association of electrical and medical imaging equipment manufacturers. Founded in 1926 and headquartered near Washington, D.C., its approximately 450 member companies manufacture products used in the generation, transmission and distribution, control, and end use of electricity. These products are used in utility, industrial, commercial, institutional, and residential applications. The association's Medical Imaging & Technology Alliance (MITA) Division represents manufacturers of cutting-edge medical diagnostic imaging equipment including MRI, CT, x-ray, and ultrasound products. Worldwide sales of NEMA-scope products exceed $120 billion. In addition to its headquarters in Rosslyn, Virginia, NEMA also has offices in Beijing and Mexico City.

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