On October 11, Senate Majority Whip *** Durbin (D-IL) sent a strong letter to FERC Chairman Joseph Kelliher expressing opposition about a recent decision approving a proposal to "roll-in" costs of new transmission facilities in the PJM Interconnection. Durbin advocated a reversal of the FERC decision, stating that those who will not benefit from these upgrades, particularly Illinois consumers, will be paying a significant portion of the costs, while the upgrades will primarily benefit the eastern portion of the PJM region.
Durbin said, "Illinois has been supportive of the Commission advancement of competitive structures. However, the Commission's recent decision is a dramatic departure from its traditional approach of cost allocation. I am concerned that this approach will result in an inadequate rate structure for Illinois electricity customers."
The Durbin letter indicates that those utilities that favor "participant funding" for new transmission facilities have not given up the fight and again, are turning to Congress to help persuade FERC to adopt that cost allocation formula.