Friends of Nelson joined 15 other public interest organizations in signing a joint comment to the Federal Energy Regulatory Committee (FERC) in response to their Notice of Inquiry on on whether and how to revise its rate of return on equity (ROE) policy for projects, including new gas pipelines. Discussion points in the joint comment include:
- 14 percent ROE is excessive in relation to other capital-intensive regulated projects
- Profit-driven pipeline affiliate deals place captive ratepayers at risk
- Traditional utilities are lured by lucrative pipeline profits
- A 14 percent ROE overstates utility pipeline investor risk
- Pipeline investments are at risk of becoming stranded assets
- Pipeline overbuild is occurring
To read the full comment, click here.
The comment period for FERC’s Notice of Inquiry ended on June 26, 2019.