VOLUME 1 Federal Transmission Pricing: The Evolution of Current Policies and Practices

Volume 1 of this two-part report — prepared by Grid Strategies and co-published with Americans for a Clean Energy Grid — is a primer on how federal transmission pricing got to where it is today and why the current framework looks the way it does.

It walks through the Federal Power Act’s division of authority between FERC and the states; the cost causation and beneficiary-pays principles that anchor FERC’s “just and reasonable” standard; the key orders — 888, 2000, 2003, 890, and 1000 — that shaped today’s framework; and how local, regional, and interconnection-related transmission costs are allocated and recovered in practice