Commissioner James Danly Statement
December 16, 2021
Docket No. RM20-16-000
I concur with the issuance of this final rule because I agree that the record in this proceeding supports a finding that current transmission rates are unjust and unreasonable because line rating information is often inaccurate.[1] The rates customers pay to support transmission are distorted because the ratings that purport to represent the true operating characteristics of the transmission system are distorted. The voluminous record evidence in this proceeding is sufficient to support a Federal Power Act section 206 action to remedy unjust and unreasonable rates.[2] The record also is sufficient to support the replacement rates we order in this rule.
Of course, we cannot act pursuant to section 206 without substantial record evidence that the existing rate is unjust and unreasonable and further record support for a replacement rate. We cannot impose a requirement for dynamic line ratings, for example, because we do not have the record support to do so at this time.[3] Action cannot be taken under section 206 merely because a potential reform is a good idea or because a contemplated policy might yield greater efficiencies.
Here, I am persuaded that we have sufficient record evidence to require ambient-adjusted ratings (AAR) on all transmission lines because the record shows the existing paradigm significantly distorts efficient use of the transmission system.[4] In addition, AAR is a just and reasonable replacement rate because the record evidence shows the additional costs are incremental and will provide significant benefits.
In this case, the requirements of both steps of section 206 have been satisfied. As a Commission, we must ensure that every action taken under section 206 fully meets these burdens and I will apply the same rigorous analysis to every future section 206 proposal to improve the transmission system.
For these reasons, I respectfully concur.
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