The Federal Energy Regulatory Commission has approved a cost recovery framework allowing transmission projects planned jointly across MISO and PJM territories to proceed without undergoing competitive bidding, according to Utility Dive. The decision impacts utility operators including Exelon and Duke Energy, both major grid operators within these regional transmission organizations.
FERC's approval rejects arguments from stakeholders who had advocated for mandatory competitive bidding processes for the planned transmission investments. The cost recovery mechanism enables utilities to recoup expenses for infrastructure development spanning the two interconnected regions, streamlining project development timelines while maintaining regulatory oversight.
This decision reflects FERC's broader approach to balancing infrastructure investment incentives against competitive market principles. The approval allows utilities to move forward with transmission modernization efforts designed to enhance grid reliability and accommodate evolving energy demands across the interconnected system.