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FERC Transmission Ratemaking

November 29-30, 2022 | Online

Sponsored by EUCI

Click Here to register $1195.00

If you are unable to attend at the scheduled date and time, we make recordings available to all registrants for three business days after the event

Investment analysts have signaled in recent years a preference for electric utility investment in rate regulated activities, including transmission and distribution. Meanwhile, FERC’s Order No. 1000 reforms sought to create new opportunities for utilities and other developers to compete for regionally planned transmission projects. FERC’s policies on ratemaking for transmission service have been in flux, and challenges to utilities’ return on equity are now commonplace, placing a premium on understanding how utilities subject to FERC’s jurisdiction recover their transmission cost of service.  

This course will provide attendees with a review of FERC’s regulation of transmission-owning utilities and a working knowledge of cost-of-service rates for transmission. Attendees will learn how to construct a revenue requirement and calculate transmission rates from utility books and records using FERC’s cost of service statements or a formula rate. They will learn about the latest developments in FERC ratemaking policy and precedent on hot button issues such as ROE and tax reform. Attendees will return to their organizations ready to participate and add value in any initiative related to FERC transmission ratemaking.   

Learning Outcomes  

  • Gain working knowledge of FERC’s regulation of electric utilities under Part II of the Federal Power Act
  • Achieve familiarity with FERC’s Uniform System of Accounts
  • Discuss how to construct a transmission revenue requirement and transmission rates based on utility accounting records, including rate base, rate of return, depreciation, expenses, and taxes
  • Identify how to populate and true-up a formula rate template
  • Examine how to estimate the return on equity using FERC’s evolving methodology
  • Review recent FERC ratemaking developments in areas such as ROE, income taxes, and incentive rates



9:00 a.m. – 4:30 p.m. Central Time

Introduction to FERC’s Regulation of Electric Utilities

  • Part II of the Federal Power Act: Regulation of Wholesale Sales and Transmission in Interstate Commerce
    • FPA Section 205: Utility Rate Filings
    • FPA Section 206: Third Party Complaints and FERC Investigations
  • Rate Review Process
    • Administrative Process for Rate Filings
    • Standards for Ratemaking
  • Landmark Rulemakings: Transmission
    • Order No. 888: Mandatory Open Access and the Pro Forma OATT
    • Order No. 2000: Regional Transmission Organizations
    • Order No. 679: Incentive Rate Treatments for Transmission
    • Order No. 890: Refinements of the Pro Forma OATT
    • Order No. 1000: Regional and Interregional Transmission Planning

Introduction to Cost of Service Rates

  • Uniform System of Accounts (USofA)
    • Purpose of USofA
    • USofA Roadmap
  • Step Through the Development of a Revenue Requirement and Rate Design by Reviewing Key Components of Cost-of-Service Rates
    • Rate Base
    • Rate of Return, Including ROE
    • Depreciation
    • O&M and A&G
    • Taxes
    • Billing Determinants
  • Group Exercise: Build a Transmission Rate

Formula Rates

  • History of Formula Rates for FERC-Jurisdictional Services
  • Stated Rates vs. Formula Rates – Pros and Cons
  • In Depth Review of Sample Formula Rate:
    • Populating Values from FERC Form No. 1
    • Fixed Values:
      • ROE
      • Depreciation Rates
      • PBOPs
  • Annual Update Process
    • Calculation of True-Up Adjustment
    • Projected Costs
    • Discovery and Challenge Procedures
    • FERC Informational Filing


9:00 a.m. – 12:00 p.m. Central Time

Current Issues

  • ROE: Opinion Nos. 569 and 569-A and Where We Go from Here
  • Income Taxes: Congressional Tax Reform and Impacts on Utility Rates
  • Incentive Rates
  • Use of Formula Rates by Non-Jurisdictional Municipal and Cooperative Utilities in RTO/ISO Regions
  • Use of Formula Rates by Competitive Transmission Developers for Competitive Order No. 1000 Projects


Kelsey A. Bagot, Associate, Troutman Pepper Hamilton Sanders LLP

Kelsey Bagot’s practice focuses on representing electric and natural gas utilities in regulatory and rate case litigation proceedings before FERC under Sections 205 and 206 of the Federal Power Act and Sections 4 and 5 of the Natural Gas Act. In particular, Kelsey has extensive experience in representing investor-owned and municipal utilities in cost-of-service rate proceedings before FERC, including transmission rate cases. Previously, Kelsey was a Trial Attorney at FERC, where she represented the Office of Administrative Litigation in settlement and administrative hearings concerning complex electric, natural gas, and oil pipeline matters. 

Chris Duffy, Director Regulatory Services, American Electric Power 

Chris Duffy is a Director of Regulatory Services for American Electric Power in Columbus, OH. Chris leads a team responsible for managing rate filings at FERC, including the administration of over 40 wholesale generation and transmission formula rates in PJM, SPP, and MISO. Chris has participated in several transmission formula rate cases including initial rate formation, rate modifications, and complaints.

Justin P. Moeller, Managing Attorney—Federal Regulatory Affairs, NextEra Energy, Inc.

Justin Moeller manages the Federal Regulatory Affairs business unit at NextEra Energy in Washington, DC. Justin has extensive experience representing utilities in cost-of-service rate proceedings before FERC, including transmission formula rate cases. Since 2012, Justin has participated in more than a dozen different transmission formula rate cases. Justin has also assisted in responding to complaints involving formula rate issues and in responding to issues arising during the formula rate annual update process. He also has experience developing and prosecuting stated rates for transmission and ancillary services, including wind integration charges.

Douglas W. Smith, Partner, Van Ness Feldman, LLP

Doug Smith is a partner in the Washington, DC office of Van Ness Feldman, where he is a member of the firm’s Electricity Practice. Doug has an active practice representing electric utilities and other energy sector clients before the Federal Energy Regulatory Commission (FERC).  He advises clients on regulatory policy concerning the electricity sector, including the rules establishing the framework for transmission development, access, and ratemaking.  Following Order No. 1000, Doug has represented a number of transmission developers located throughout the country in preparing, filing, and prosecuting transmission formula rate cases. He has also represented transmission developers in seeking incentive rate treatments under Order No. 679. Prior to joining Van Ness Feldman, Doug served as General Counsel to the FERC, and as Deputy General Counsel for Energy Policy at the U.S. Department of Energy.